- Retail regular gasoline prices fell by 2.2c in the last four weeks to $3.807/Gal. About 50% of the change was due to the price of crude oil, while the remainder was the refinery margin
- Scroll down for a chart of the RBOB-WTI crack spread, a measure of refinery margin. It shows elevated cracks this year
- Total motor gasoline inventories fell by 0.2 MMBbl for the week ending August 25 and are about 6% below the five-year average for this time of year
- Congress plans to sell the East Coast’s unused 1 MMBbl gasoline reserve (Bloomberg)
- Senate to consider legislation to close the untapped Northeast Gasoline Supply Reserve, created after Hurricane Sandy
- Despite the near ten-year low East Coast gasoline stockpiles, the 1 MMBbl reserve is seen as insufficient, given the region's daily consumption of 3.26 MMBbl in June
- Maintenance costs for the reserve are about $13/Bbl annually, far higher than the $0.30/Bbl for crude oil in the SPR
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- Retail diesel prices rose by 31.1c in the last four weeks to $4.492/Gal. About 47% of the change was due to the price of crude oil, while the remainder was the refinery margin
- Scroll down for a chart of the NY Harbor ULSD-WTI crack spread, a measure of refinery margin. It shows elevated cracks this year
- Distillate fuel inventories rose by 1.2 MMBbl for the week ending August 25 and are about 16% below the five-year average for this time of year
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