Daily Crude Oil Chart (click on chart to view)
Even hurricanes have not been able to pull crude oil out of its downward trend. If the damage to oil production out of Texas proves to be not that severe, I would think that next week is going to be more of the same for crude oil.
Of course I'm prepared to follow whichever way it goes.
Refining is another issue, and it looks like higher gasoline prices will be here for a while. That's why I own my local gas station.
If you need proof that refiners and gasoline retailers have not been gouging anyone in the recent past take at look at Parkland's Q2 results.
Here is a quote from their Q2 2008 quarterly report.
"The daily average spread between the price of crude oil and the posted gasoline rack
price at the refinery gate in Edmonton (refiners’ margin) was 9.9 cents per litre in the second quarter (9.4 cents per litre for six months) compared to 26.5 cents per litre in the second quarter of 2007 (19.4 cents per litre for six months). These variances affected those volumes where we share in the refiners’ margin under our supply contracts and reduced gross margins by approximately $30 million for Q2 2008 compared to Q2 2007 and by approximately $35 million for the six months ended June 30, 2008 relative to the six months ended June 30, 2007. The refiners’ margin for gasoline in the second quarter was 3.4 cents per litre lower than the annual average for the prior five years."
Of course there are a lot of folks who never let the truth get in the way of a good story.