Benzene May Hit 45 Baht Per Liter & Diesel Could Hit 38 Baht Per Liter In The Next Few Days

[PeaceBlondie]

George W. Bush (Junior, the younger, the failure) was never a successful oil man, but his father was. Texas is big enough to have had as many frauds as New York, or London. But it no fluke that Exon, Mobil, Shell, etc., have their US corporate headquarters in Texas , nor that so many huge refineries line Interstate 10 going from Houston to Beaumont. They do not want refineries or off-shore drilling platforms around Vermont, but they want cheap oil to power their big cars and their home furnaces.

[highdiver]

Both oil and gas are traded on three markets: the contract market, the spot market, and the futures market. Each is influenced by different factors and impacts the price of gas at different stages of production.

the contract and spot markets are informal networks of businesspeople determining the prices by the simple laws of demand and supply.

the contract market is basically buy and sell contracts between oil producers and refineries.

The spot market fills the gap left by the contracts market. When a refiner needs extra oil to meet its contracts, they find people with surplus oil on the spot market. Unlike the contract and futures markets, which trade pieces of paper, the spot market involves the trade of actual barrels.

The best deals are often found on the spot market. Since neither the buyer or seller is locked into a prearranged deal, the laws of supply, demand, and free market are mostly in effect.

the futures market kind of markets found on Wall Street. oil is not sold here but its price is speculated for financial gain.

A futures contract might stand for 1,000 barrels of West Texas Intermediate to be delivered at Cushing, Oklahoma. The futures market represents that collective state of the oil market at any particular moment. When you hear reporters talk about the price of oil reaching $100 per barrel, they're talking about the futures market. Because fluctuations on the futures market are driven by information, its prices guide the contract and spot markets.

so if you are are willing to buy a future contract for 200$ a barrel you will in fact be guiding the contract and spot markets to raise the price.

The people buying and selling futures rarely, if ever, collect on their contracts; a seven year period saw 5 billion barrels traded, of which only 31,000 were ever delivered.

As the sub prime bubble exploded huge financial investors took up positions in the commodities market.. OIL included and they are speculating on the prices to make a profit. (thats why food is getting more expensive as well).

so at this moment the price of oil has nothing to do with demand and supply. it has to do with investors (that don't produce , refine or sell oil) speculations pushing the futures up for making a speculative gain.

The investors are buying oil futures at higher prices futures market flips out, sending the price of crude skyward.

The higher price on the futures market makes it more expensive for refiners to acquire crude to refine into gas. When the refiner's work is done, the emerging gas will be priced accordingly higher. This raises the rack price and the prices on the spot markets. Oil companies and jobbers with long-term contracts might be insulated from the higher price, depending on their contracts.

Refining oil into gas isn't instantaneous, and there can be a lag before the higher price of the oil is reflected in higher gas prices paid by jobbers and oil companies. That, of course, didn't stop them from raising prices the moment the futures market jumped. So now that the oil that was purchased for refining at a higher cost is ready to hit the market as gas, the oil companies will raise prices again.

the OPEC countries mainly Saudi the worlds largest producer are complaining that even if they increase production to flood the markets in oil. it would not help unless governments mainly US will put restrictions on financial speculations on future oil prices.

[A_Traveller]

It would be polite <sigh> to add the link to the originating article, written by Carey Greenberg-Berge in 2007, don't you think, oh apart from @ 40 words, or even better the US Congressional Report {2001} where much of the analysis comes from, .

Regards

LINK

Executive Summary Senate Report

Edited May 25, 2008 by A_Traveller

[Heng]

George W. Bush (Junior, the younger, the failure) was never a successful oil man, but his father was.

I bet he's (Jr.) doing okay behind the scenes in the 'oil services' biz.

[sriracha john]

Political Uncertainty and Costly Gasoline to Undermine Thai Economy

The Finance Ministry's Fiscal Policy Office admits there is a risk that politics, energy prices, and inflation will reduce Thailand's economic expansion this year. Theses factor have led the agency to prepare for a revision of the country's key economic indicators forecast.

The FPO will consider oil price hikes, inflation, and political disturbances for a revision of the country's economic indicators forecast for the year 2008, at the next meeting in June.

Pannee said the assumption of the average crude oil price of this year will be adjusted to the current price as much as possible. She revealed that many agencies have predicted the figure at a rate between 90 and 100 U.S. dollars per barrel and it is likely to increase in the near future. *DUH*

Regarding whether inflation will go up above 6.2 per cent in April, the FPO director-general said it depends on the price of food and gasoline and commented that developing countries should have inflation at three to five per cent.

She said improvements in investment, consumption, and exports in the industrial sector are clearly positive factors for the economy as Thailand has enjoyed a six per cent growth in the Gross Domestic Product or GDP during the first quarter of 2008.

She admitted that she is concerned about a drop in consumer confidence and said the situation should be monitored for another few months.

- Thailand Outlook

[slapout]

Have not noticed pump prices coming down in past week. Oil has fallen 10 dollars a bbl during this time. Its going to interesting to see how the proposed 3 baht/liter fuel discount will be allocated, the buses and fishing boats okay, but the farm sector use the same pumps as the general public. All of this going on while PTT officials said their pump price was 1.5 baht/liter less than the majors. Have not noticed that in the CM area.

[PeaceBlondie]

Have not noticed pump prices coming down in past week. Oil has fallen 10 dollars a bbl during this time. Its going to interesting to see how the proposed 3 baht/liter fuel discount will be allocated, the buses and fishing boats okay, but the farm sector use the same pumps as the general public. All of this going on while PTT officials said their pump price was 1.5 baht/liter less than the majors. Have not noticed that in the CM area.

Yesterday afternoon, going south on the klong road, the self-service LimeGreen (or is it LemonYellow) had identical price to PTT, 39.74 baht for 91 octane. I am nearly tempted to fill up on a half tank, assuming the price will be higher tomorrow.

[bonobo]

A littel bit off-topic, but does anyone know how many km pere liter a car gets for NGV or LP vs benzine?

[slapout]

LP in pickup I used to have (real world installed) got about 10% less milage vs gasoline. Have no idea on NGV.

[scotbeve]

A news blurb from Alexanders Gas & Oil Connection..

The good news, the bad and the ugly

Starting with the good news first: it seems there is an expectation amongst a greater group of oil-executives that the price of oil will go down substantially later this year. (see article in ‘Features’). A good 55% even believes that the price will go below $ 100 per barrel, which by then could be an almost 50 % reduction. What can we say, other than that we hope the wisdom and foresight of these executives will be accurate, and that we will be given a pause in the relentless driving up of the prices?

The bad news comes from the article "Perhaps 60 % of today’s oil price is pure speculation" (also ‘Features) that describes how the speculation works and how it has become possible that so much money can be used to speculate on the oil-price (and other commodities) without any oversight or control even being possible. The article describes also how the infrastructure for this has been and is being created, which does not bode well for the future prices, as there seems to be no limit to the insatiability of ‘the market’ and those facilitating it.

The good news in this is, that it is now said long enough and ever more clearly by OPEC-dignitaries and other high-level executives, that there is enough oil in the market and there is therefore no reason for such high prices, other than speculation, in which some start to make the link with the dollar going down and oil-prices going up. Hopefully one day in the future the market will return to its fundamentals, and then we may see lower prices. Unless of course another major crisis is taking place…

[sriracha john]

Higher Domestic Oil Price Expected This Week

Managing Director of Bang Jak Petroleum Public Company Limited Anusorn Saeng-nimnuan said his company will raise its retail oil prices by 70 satang per liter. The readjustment will come into effect on Monday.

Anusorn said the soaring price in the world market causes his company's marginal cost to run in deficit and its refineries are required to help supply 122 million liters of diesel per month at a lower price to alleviate the burden of the people.

Meanwhile, energy expert Manoon Sirwan said the current oil price of 138.54 US Dollars per barrel is a new high, adding that the hike is influenced by the weakening of the US dollar as well as the tension between Israel and Iran.

Due to these two factors, the price of crude oil is expected to reach 150 US Dollars per barrel on the upcoming July 4th, America's national day, as its people will consume more energy on their holiday trips.

Manoon also pointed out that the price of refined oil in Singapore's market closed higher on Friday. Thailand's domestic retail price relies on this market. This situation will result in a further hike of the domestic retail oil price.

Meanwhile, five powerful economic countries, the United States, China, Japan, India, and South Korea, are asking the Organization of Petroleum Exporting Countries to increase their output to resolve the problem of the rising oil price that could damage the world economy.

These countries have also pledged to develop clean technology and consume energy efficiently.

- Thailand Outlook / 08-06-08

[Khun Jean]

In Europe i still wonder why the gasoline prices are about 50% up and the oil did not even get 10% more expensive when you calculate in Euro's. Somebody is taking advantage of the situation.

[Naam]

In Europe i still wonder why the gasoline prices are about 50% up and the oil did not even get 10% more expensive when you calculate in Euro's. Somebody is taking advantage of the situation.

in january 2007 crude was $50/barrel = at that time €38/barrel. today a barrel is $137 = €87. that's "slightly" more than 10%. if i'm not completely mistaken crude in €UR terms is up ~128%

[sriracha john]

It goes right past 40 as it nears 41... 40 baht diesel is next as well...

Retail oil prices increase by 70 satang/liter

All energy firms in Thailand have increased their retail prices of oil by 70 satang this morning (June 9th). In this connection, the retail price of benzene 95 stands at 40.79 baht a liter while the retail price of diesel stays at 39.74 baht a liter.

All oil companies have decided to raise their oil prices in accordance the rising crude price in the global market in June 6th. Previously, the price of crude oil closed at 139 US dollars a barrel, or 11 US dollars a barrel higher.

Meanwhile, the oil trade movement in Singapore Market is playing a vital role and it may reflect the price of crude oil in the global market. It is expected to affect the retail oil prices in Thailand.

- ThaiNews / 090608

[sriracha john]

Fares for city passenger boats, ferries to be raised

Passenger boat and ferry fares in Bangkok will rise by 0.50-2 baht per trip from June 25 to cope with soaring diesel prices. However, the fares of ferries at crowded piers will remain unchanged. Prasong Tanmaneewatana, director-general of the Marine Department and head of the Transport Ministry's passenger boat committee, said yesterday that the fares of ferries at small piers on the Chao Phraya river will rise to 3-4 baht from 2.50-3.50 baht. This will apply to every pier that serves no more than 5,000 passengers a day.

Continued here:

http://www.bangkokpost.com/News/11Jun2008_news09.php

[sriracha john]

Prices of Gasohol and Diesel Raised by Another 50-80 Satang

Shell continues to raise its retail pump prices on a daily basis

In its latest announcement, the oil conglomerate has decided to up its diesel pump prices by another 80 satang, a new high of over 42 baht per liter.

Reports have also come out that small oil retailers nationwide have begun to close their doors due to the escalating world oil prices.

Shell has once again shocked motorists by its decision to raise pump prices for diesel by 80 satang and gasohol 95 by 50 satang. The latest round of increase means, at Shell, the price of diesel is now 42.14 baht per liter while gasohol 95 is 37.39 baht a liter. The price of gasohol 91 is at 36.59 baht per liter.

Prices of benzene remains the same at 43.39 baht for benzene 95 and 40.99 baht for benzene 91.

PTT has also raised its diesel price by 80 satang today. The price of diesel at PTT gas stations now stand at 41.34 baht per liter.

The prices of benzene fuels are cheapest at PTT stations. Benzene 95 at PTT costs 41.59 baht and benzene 91 is 40.49 baht a liter. As for Esso, retail prices for benzene 95 and 91 are 42.09 baht per liter and 40.99 baht a liter respectively.

Meanwhile, oil Retailers' Association President Somphob Thanateerapong says around 50 per cent of small oil retailers have been forced to close their doors due to the drastic drop in demand and the expensive fuel prices. These retailers are calling for the government to reduce its refinery charges to allow small oil businesses a chance to survive.

On the international front, this morning in Singapore, light, sweet crude for July delivery was down 19 cents at 136.55 U.S. dollars a barrel in electronic trading on the New York Mercantile Exchange.

Meanwhile, the G8 finance ministers' two-day meeting in the western Japanese city of Osaka kicks off today. The main issues expected to be discussed by the ministers are the rising oil and food prices which have put a lot of pressure on inflation during the past two to three years, the world economic growth and the world climate change.

- Thailand Outlook (today)

[ChiangMaiAmerican]

I hae been doing a bit of research on biodiesel manufacture. It seems algae of all things produces more oil per unit of land than any other plant source. There have been studies in the US on the productivity of algae vs other biodiesel sources. Algae will yield 5,000 to 20,000 gallons of oil per acre per year. I is productive in year one.Palm oil produces 230 to 500 gallons per acre per year. It takes five years for an oil palm to reach the size needed for commercial production. Already one US company has begun operation on 1100 acres in Texas. Production is expected to be 4.4 million gallons per year from this facility. Several other US companies are either building facilities or raising capital to do the same. If Thailand would explore this process it might be possible to replace oil imports within a few years if not sooner. It certainly appears to be more productive than the current palm oil scheme.

http://gas2.org/2008/03/29/first-algae-bio...ne-april-1-2008

Edited June 13, 2008 by ChiangMaiAmerican

[marquess]

Prices of Gasohol and Diesel Raised by Another 50-80 Satang

Shell continues to raise its retail pump prices on a daily basis

In its latest announcement, the oil conglomerate has decided to up its diesel pump prices by another 80 satang, a new high of over 42 baht per liter.

Reports have also come out that small oil retailers nationwide have begun to close their doors due to the escalating world oil prices.

Shell has once again shocked motorists by its decision to raise pump prices for diesel by 80 satang and gasohol 95 by 50 satang. The latest round of increase means, at Shell, the price of diesel is now 42.14 baht per liter while gasohol 95 is 37.39 baht a liter. The price of gasohol 91 is at 36.59 baht per liter.

Prices of benzene remains the same at 43.39 baht for benzene 95 and 40.99 baht for benzene 91.

PTT has also raised its diesel price by 80 satang today. The price of diesel at PTT gas stations now stand at 41.34 baht per liter.

The prices of benzene fuels are cheapest at PTT stations. Benzene 95 at PTT costs 41.59 baht and benzene 91 is 40.49 baht a liter. As for Esso, retail prices for benzene 95 and 91 are 42.09 baht per liter and 40.99 baht a liter respectively.

Meanwhile, oil Retailers' Association President Somphob Thanateerapong says around 50 per cent of small oil retailers have been forced to close their doors due to the drastic drop in demand and the expensive fuel prices. These retailers are calling for the government to reduce its refinery charges to allow small oil businesses a chance to survive.

On the international front, this morning in Singapore, light, sweet crude for July delivery was down 19 cents at 136.55 U.S. dollars a barrel in electronic trading on the New York Mercantile Exchange.

Meanwhile, the G8 finance ministers' two-day meeting in the western Japanese city of Osaka kicks off today. The main issues expected to be discussed by the ministers are the rising oil and food prices which have put a lot of pressure on inflation during the past two to three years, the world economic growth and the world climate change.

- Thailand Outlook (today)

These prices are reflecting the high last week Friday when the Israeli minster mouthed off about Iran. Prices are now at:

Brent Crude Oil $/barrel 132.41

0.00

0.0

West Texas Intermediate Crude Oil $/barrel 133.63

0.00

0.0

Source BBC Market Data 15.16 local time today

When will prices be lowered to reflect this? Always about makeing money and screwing people!

[ovenman]

It goes right past 40 as it nears 41... 40 baht diesel is next as well...

Diesel is at 42.89 baht/litre in Chiang Mai this evening.

[tropo]

It goes right past 40 as it nears 41... 40 baht diesel is next as well...

Diesel is at 42.89 baht/litre in Chiang Mai this evening.

95 octane petrol was 42.89 last night (40.65 last week) at Shell in Pattaya, so it looks like the prediction of 45 baht will soon be reached, and breached.

That's almost US $5 per US gallon (3.8 litres). It's painful to hear all the whinging about the US gas prices on CNN everyday when they still have some of the cheapest gas in the developed world.

Australia is averaging just over $6 per US gallon, and Europe is much higher still.

What is it averaging now in England and other parts of Europe?

Edited June 15, 2008 by tropo

[Robski]

In the UK it's around £1.30 a litre for diesel and rising almost daily.

Edited June 15, 2008 by Robski

[tropo]

In the UK it's around £1.30 a litre for diesel and rising almost daily.

Yikes! That's about $2.53 per litre or $9.61 per US gallon for diesel.

What's petrol going for?

Edited June 15, 2008 by tropo

[sriracha john]

If the barrel price keeps rising, the pump price will likely follow?

Oil hits record of near $140

LONDON : Crude oil rocketed to a record high of almost US$140 a barrel yesterday despite news that Saudi Arabia was ready to raise output to help cool soaring energy costs. New York main oil futures contract, light sweet crude for July delivery reached $139.89, beating its all-time high of $139.12 recorded on June 6.

Continued here:

http://www.bangkokpost.com/News/17Jun2008_news05.php

[Heng]

There are definitely people out there who are driving less. All but one of my office staff have reverted to public transport.

[PeaceBlondie]

The opening post is dated 23 April and parts of it have not yet happened by 19 June. If anything, 91 benzene seems to have finally hit a plateau at 42, after a breathtaking rise. This has already been a weird week for my driving, about 260 km in three days. But at these prices, I will find shortcuts and ways to drive less.

[cclub75]

The opening post is dated 23 April and parts of it have not yet happened by 19 June. If anything, 91 benzene seems to have finally hit a plateau at 42, after a breathtaking rise. This has already been a weird week for my driving, about 260 km in three days. But at these prices, I will find shortcuts and ways to drive less.

Everything is fine. The crisis is over China announced today a hike of gasoline, diesel prices etc. (+ 17%) (after India, Malaysia, Indonesia etc.). The barrel WTI lost 4 USD at 132 ! In a snap.

If you have a bad mood, you'll notice that 132 is more than double the price of 1 year ago...

Anyway, they think that with this move the demand is going to be curbed.

We'll see....

Personally I think that "to curb" is not a chinese word.

[SNGLIFE]

Why, the incredible rise in oil you ask?

http://rawstory.com/rawreplay/?p=1312

Pretty much sums it up from the political angle.

http://www.theoildrum.com/

Pretty much sums it up (and gives details) from every other angle.

[rethaired]

The case for hybrid cars is getting stronger and stronger.

And/or the case to remove the loopholes that have allowed speculators to play Russian roulette with poor children, poor women, and poor men (and everyone else): http://www.stopoilspeculators.com/

FACT: About 60% of the rise of the price of oil (and other commodities) is due to speculation.

Of course, the speculators will say otherwise, claiming that all this is good for the environment (which it is) and that peak-oil is responsible for this. If it was, why are so many manufacturers pushing hybrids? And if hybrids are going to be bought, are we not going to reduce our consumption substantially in a few years? Will peak-oil be called hill-oil then?

[PeaceBlondie]

I am no expert, but I doubt that even a million hybrid cars being sold in the world every year are going to offset a whole lot of the carbon emissions in the world, although any decrease is good. Then, like nuclear fuel, what do we do with the used hybrid batteries? What does it cost for new batteries, and how often? There is a mathematical certainty about fuel efficiency, called the point of diminishing returns. An SUV that gets 8 km per liter is a gas guzzler, and trading down for a Diahatsu Mira Mint would save the planet. But if your sedan already gets 14 km/liter, a hybrid will not save much more, because you are not using that much fuel now. Besides, how much fuel does a hybrid burn anyway, and how much fossil fuel is burned to make the batteries or the recharge?

High fuel prices will cut down automobile fuel consumption, but we do not want our fresh food delivered by oxcart. Those diesel 18-wheeled rigs burn lots of fuel.

[Farma]

With another international energy conference about to start this is from today’s Arab News

Riyadh assures market

P.K. Abdul Ghafour | Arab News

JEDDAH: Saudi Arabia announced yesterday that it would do everything possible to curb rising oil prices, which it blamed on geopolitics and speculators.

“The Kingdom looks... with great interest to oil market stability that will protect the interests of producers and consumers and promote world economic growth,” an official statement said. “As the world’s biggest oil exporter, Saudi Arabia has not and will not spare any effort to achieve oil market stability. Its oil policy aims always to foster and strengthen cooperation and dialogue between oil producing and consuming countries.”

Cont…

Kingdom has no magic wand: Abdulaziz

Samir Al-Saadi | Arab News

JEDDAH: Saudi officials said yesterday that the Kingdom has no “magic wand” that will resolve the skyrocketing oil prices.

Addressing a press conference ahead of tomorrow’s International Energy Conference here, Deputy Minister of Petroleum and Mineral Resources Prince Abdulaziz bin Salman said: “There are political, economic and regulatory factors involved.

“The soaring oil prices require immediate intervention by everyone. Combined solutions are needed where roles are defined.”

Cont….

Plans to pump extra 200,000 bpd: Al-Naimi

P.K. Abdul Ghafour | Arab News

JEDDAH: Minister of Petroleum and Mineral Resources Ali Al-Naimi announced yesterday that Saudi Arabia would increase its daily output to 9.7 million barrels next month, pumping an extra 200,000 barrels to world markets.

Cont….

Source http://arabnews.com/