US Products Outlook-Diesel gets a boost from Midwest

Not logged in [Log In] [Sign Up] [Points Leaders] [My Profile]

Friday, November 21, 2008 1:57:02 AM

Featured Sponsor

Save 5% on gas Get a 5% rebate on gas purchases with the Discover Card* Click here for more info


Add gas prices to your web site. Click here to find out how!

GasBuddy News Article

US Products Outlook-Diesel gets a boost from Midwest Tuesday, October 14, 2008
Reuters -- NEW YORK, Oct 13 (Reuters) - Strong agricultural demand for diesel in the Midwest is putting a floor under sinking diesel differentials in the Gulf Coast, traders said on Monday. Over the past few weeks, positive diesel cracks overshadowed negative gasoline ones -- not all that uncommon in the shoulder season -- keeping refiner profit margins in the black. But the cut back in demand had some wondering if diesel cracks would also fall victim to the disarray in global financial markets which have tightened credit necessary for doing trade. Warm weather with little rain over the corn belt this weekend made ideal conditions for the U.S. corn and soy harvest, creating strong demand.
Visit Reuters for full article

Message Forum - Read Message

Category: Daily News Article Discussions > Topics		Add to favorite topics Post New Topic
Rate this topic: Low 1 - 2 - 3 - 4 - 5 High Avg rating: 0.0 (0 votes)

Author	Topic: US Products Outlook-Diesel gets a boost from Midwest	Post a Reply Back to Topics

JT Moderator	Message Posted: 10/14/2008 10:49:32 AM	Ignore JT Report Abuse
	Tuesday, October 14, 2008 Reuters -- NEW YORK, Oct 13 (Reuters) - Strong agricultural demand for diesel in the Midwest is putting a floor under sinking diesel differentials in the Gulf Coast, traders said on Monday. Over the past few weeks, positive diesel cracks overshadowed negative gasoline ones -- not all that uncommon in the shoulder season -- keeping refiner profit margins in the black. But the cut back in demand had some wondering if diesel cracks would also fall victim to the disarray in global financial markets which have tightened credit necessary for doing trade. Warm weather with little rain over the corn belt this weekend made ideal conditions for the U.S. corn and soy harvest, creating strong demand. Visit Reuters for full article

REPLIES (newest first)

First

Next Last

kilch123 All-Star Author Baltimore Posts:548 Points:72,295 Joined:Aug 2008	Message Posted: 10/16/2008 9:11:40 AM	Ignore kilch123 Report Abuse
	Wait... Diesel needs MORE refining than gas??? Where do you get your ideas? Diesel comes from WAY below gasoline on the tower. skybiker - the ONLY reason that fewer gallons of diesel per barrel can be refined is because that is the way the towers are designed! The refiners spent MILLIONS to convert the towers to maximize gasoline output. It's much easier, cheaper, and faster to refine crude to diesel/heating oil/jet fuel than it is to produce gasoline.
Kowkisser Sophomore Author Albany Posts:249 Points:47,920 Joined:May 2008	Message Posted: 10/16/2008 8:48:47 AM	Ignore Kowkisser Report Abuse
	In NYC, there is not enough demand for dielel, so cost per gallon is higher. Also, on the road diesel needs more refining than gas. This wasn't always the case. A couple of years ago, the US required the use of low sulfur diesel, (though still not as stringent as in Europe.) This caused the cost of diesel to skyrocket, because the cheapest grades of diesel were no longer usable (or they needed significant amount of refining.) However, this requirement will also make diesel more able to be used in small cars here. One of the problems with cold morning starts, the smell was the impurities in the diesel. Many engines could not run as efficiently on our diesel as they could in Europe, so there was not as much benefit for diesel in smaller cars. Now we just need to change the mindset of people and make them realize that diesel cars run as well as gasoline cars. But this is yet another reason for diesel becoming more expensive. People have been changing from gasoline to diesel, causing demand to increase, and therefore prices.
RLGL123 Sophomore Author New York Posts:112 Points:26,380 Joined:Oct 2008	Message Posted: 10/16/2008 1:40:42 AM	Ignore RLGL123 Report Abuse
	Diesel is apx $1.50/gallon more than gas in NYC.
djgunrunner Champion Author Salt Lake City Posts:1,546 Points:747,020 Joined:Apr 2005	Message Posted: 10/16/2008 12:58:12 AM	Ignore djgunrunner Report Abuse
	Diesel should be prices about $1.00 a gallon less than gas. Big oil has cut back on production with a bunch of cheap excuses on why their is not enough but the real answer is gouging and profiteering.
skybiker Sophomore Author South Carolina Posts:172 Points:38,685 Joined:Jul 2008	Message Posted: 10/15/2008 10:34:36 PM	Ignore skybiker Report Abuse
	Diesel is more expensive because fewer gallons of diesel can be had per barrel of oil. By the way jet fuel is the same crack of the barrel and compete with the demand for road diesel.
fatone Sophomore Author Ventura Posts:154 Points:22,350 Joined:Sep 2007	Message Posted: 10/15/2008 5:52:47 PM	Ignore fatone Report Abuse
	Diesel is cheaper than gasoline in my area
MacGyver_1701 Champion Author Indiana Posts:5,199 Points:1,141,850 Joined:Feb 2005	Message Posted: 10/15/2008 1:51:03 PM	Ignore MacGyver_1701 Report Abuse
	Anything excuse for wholesalers to use for supporting their gouging.
21597 All-Star Author Colorado Posts:642 Points:208,515 Joined:Sep 2005	Message Posted: 10/15/2008 11:50:35 AM	Ignore 21597 Report Abuse
	There are already runblings amongst the dems to re=enact the offshore drilling ban after the election and also raise the fuel tax. Let's watch congress like a hawk and keep the pressure on.
EarlyMoose Champion Author Seattle Posts:1,849 Points:695,005 Joined:Dec 2005	Message Posted: 10/15/2008 11:26:25 AM	Ignore EarlyMoose Report Abuse
	Vote out ALL incumbents!
Gerund1 Champion Author Toronto Posts:1,147 Points:828,105 Joined:Apr 2003	Message Posted: 10/15/2008 11:05:16 AM	Ignore Gerund1 Report Abuse
	Will that mean that the price of diesel will go up over North America??
Lengas Champion Author Gary Posts:4,644 Points:1,111,445 Joined:Nov 2004	Message Posted: 10/15/2008 11:04:42 AM	Ignore Lengas Report Abuse
	DRILL DRILL DRILL DRILL!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
ramshot412 Champion Author Riverside Posts:11,938 Points:1,195,960 Joined:Apr 2004	Message Posted: 10/15/2008 11:03:01 AM	Ignore ramshot412 Report Abuse
	Hopefully, clearer thinkers than WWCJ will prevail....
915Chief All-Star Author San Diego Posts:507 Points:98,520 Joined:Aug 2008	Message Posted: 10/15/2008 10:59:15 AM	Ignore 915Chief Report Abuse
	Agreed...keep the pressure on
Kthyme Champion Author Fort Worth Posts:2,671 Points:876,390 Joined:Apr 2006	Message Posted: 10/15/2008 10:58:28 AM	Ignore Kthyme Report Abuse
	I'm with you wwcj! Drill Here... Drill Now... Payless!!! ;)
wwcj Veteran Author Virginia Posts:373 Points:92,205 Joined:Jul 2008	Message Posted: 10/15/2008 10:50:30 AM	Ignore wwcj Report Abuse
	We need to insure that the Drill Now, Drill often, will happen in the next congress. We should only elect Senators and House members that promise to vote for Drilling. Serious rumors are that Pelosi and Reed will re-invoke the drilling band right after the elections. This will happen wether Obama is elected or not. Need to keep the pressure on congress. If you want lower energy prices, we have to have use all sources of energy, especially the kinds that Democrats do want us to use, like nuclear power. Remember, Nancy Pelosi, thinks she is in office to 'save the planet,'
mattf373 All-Star Author Atlanta Posts:561 Points:106,745 Joined:Mar 2003	Message Posted: 10/15/2008 10:49:10 AM	Ignore mattf373 Report Abuse
	crazy
noelblak Sophomore Author Oregon Posts:170 Points:159,355 Joined:Sep 2005	Message Posted: 10/15/2008 10:48:57 AM	Ignore noelblak Report Abuse
	HMMMMMMM
TBONE3 All-Star Author Pennsylvania Posts:602 Points:355,955 Joined:Mar 2005	Message Posted: 10/15/2008 10:37:20 AM	Ignore TBONE3 Report Abuse
	Now we can sit back and wait for the next change/
Chazzer Champion Author Nevada Posts:8,086 Points:1,730,660 Joined:May 2002	Message Posted: 10/15/2008 10:36:07 AM	Ignore Chazzer Report Abuse
	The Midwest has always been a big diesel user ... mainly because of the farmers. So what's new?
w4kh Champion Author Riverside Posts:3,660 Points:640,945 Joined:May 2004	Message Posted: 10/15/2008 10:35:09 AM	Ignore w4kh Report Abuse
	We are sure seeing the effect of more diesel through the refineries... price at two stations is 10 cents/gallon LOWER than regular gasoline - like it used to be... Now, if only Ford would wise up and produce the eco-diesel from Europe over here! 60+ mpg sure would help us all!
Cuzilla Champion Author Indianapolis Posts:5,967 Points:1,001,245 Joined:Sep 2005	Message Posted: 10/15/2008 10:35:04 AM	Ignore Cuzilla Report Abuse
	Thanks for the news!
gordonfan05 Rookie Author Illinois Posts:84 Points:170,870 Joined:Apr 2005	Message Posted: 10/15/2008 10:31:04 AM	Ignore gordonfan05 Report Abuse
	Hey this year farmers decided to harvest their crops! With all the speculators in oil, you know they already had that factored in!
SeerLV All-Star Author Las Vegas Posts:537 Points:132,015 Joined:Jun 2008	Message Posted: 10/15/2008 10:30:16 AM	Ignore SeerLV Report Abuse
	We need the food so harvest on. Hope they are using some biodiesel.
RAC110 Sophomore Author Massachusetts Posts:240 Points:781,800 Joined:Mar 2003	Message Posted: 10/15/2008 10:28:09 AM	Ignore RAC110 Report Abuse
	they keep it going .
krucker All-Star Author Austin Posts:559 Points:421,030 Joined:Aug 2004	Message Posted: 10/15/2008 10:26:39 AM	Ignore krucker Report Abuse
	This good or bad?
gordonfan05 Rookie Author Illinois Posts:84 Points:170,870 Joined:Apr 2005	Message Posted: 10/15/2008 10:25:01 AM	Ignore gordonfan05 Report Abuse
	They just keep putting it to the little guy. Seems most farmers would already have fueling tanks filled for harvest. I mean tanks separate from equipment.
t4204life Champion Author Ohio Posts:4,292 Points:852,685 Joined:Jun 2006	Message Posted: 10/15/2008 10:24:47 AM	Ignore t4204life Report Abuse
	no matter what happens,higher prices will be the result.
phatride92 Champion Author Kansas Posts:3,750 Points:939,405 Joined:Oct 2005	Message Posted: 10/15/2008 10:22:42 AM	Ignore phatride92 Report Abuse
	yes datZun
racerdj Champion Author Indianapolis Posts:1,628 Points:432,185 Joined:Jun 2003	Message Posted: 10/15/2008 10:20:16 AM	Ignore racerdj Report Abuse
	And we will pay in higher food prices in the end.
Don20 Champion Author Oklahoma City Posts:1,525 Points:1,013,770 Joined:Mar 2005	Message Posted: 10/15/2008 10:18:02 AM	Ignore Don20 Report Abuse
	Give the farmers a break, who else is going to feed this country..??
datZun Rookie Author Minnesota Posts:55 Points:13,785 Joined:Apr 2008	Message Posted: 10/15/2008 10:14:42 AM	Ignore datZun Report Abuse
	Its harvest time so of course there going to hold/raise prices Supply/Demand.. duh... when that drops off snow removal/fuel oil season etc etc theres always an excuse why prices can stay high. how about a head line "Greedy Investors raising fuel costs there names are: ..."
fastfreddy38 All-Star Author Ontario Posts:855 Points:909,900 Joined:Aug 2005	Message Posted: 10/15/2008 10:12:25 AM	Ignore fastfreddy38 Report Abuse
	Its about time it went down!
ChiefDrake Sophomore Author Dallas Posts:102 Points:37,340 Joined:Aug 2008	Message Posted: 10/15/2008 10:10:33 AM	Ignore ChiefDrake Report Abuse
	Now, if we can only get that American Diesel car from Europe that gets 65 miles per gallon.....
tigeriz Veteran Author Maine Posts:302 Points:73,145 Joined:Aug 2008	Message Posted: 10/15/2008 10:08:20 AM	Ignore tigeriz Report Abuse
	Diesel needs to go down at the same rate at regular gas.
Dennis783 Champion Author Wisconsin Posts:5,603 Points:1,122,945 Joined:Sep 2005	Message Posted: 10/15/2008 10:08:00 AM	Ignore Dennis783 Report Abuse
	here also
PokerAce Champion Author Louisiana Posts:1,461 Points:296,155 Joined:Jan 2008	Message Posted: 10/15/2008 10:06:45 AM	Ignore PokerAce Report Abuse
	Diesel prices are dropping here, but much more slowly than gas....
tapprach Rookie Author Michigan Posts:10 Points:1,550 Joined:Oct 2008	Message Posted: 10/15/2008 10:06:06 AM	Ignore tapprach Report Abuse
	good conditions for harvest - it's got to be done - lets hope the recent drop in diesel costs will pass on to the consumer. This "floor" will only be temporary.
wizzard3040 Veteran Author St. Louis Posts:390 Points:168,625 Joined:May 2008	Message Posted: 10/15/2008 10:05:16 AM	Ignore wizzard3040 Report Abuse
	Global economic forcast is/has dropped over the EDGE!
NedW All-Star Author Indianapolis Posts:623 Points:161,005 Joined:Mar 2008	Message Posted: 10/15/2008 10:04:36 AM	Ignore NedW Report Abuse
	The trend of reducing the United States of American to 3rd world status by many in our own government and, seemingly, a few of its citizens, continues unabated. There’s a more ‘descriptive’ way of phrasing the last sentence but it would probably not be acceptable on this forum. Please contact your representatives and senators and hold them accountable to their sworn oath to "protect, preserve, and defend” our constitution! That is not only our right but, our responsibility. If you’re unsure of who’s yours are you can find out quickly, as well as how to contact them, by going to the following web sites: Senators www.senate.gov Congressperson www.house.gov
hank1326 All-Star Author Los Angeles Posts:505 Points:126,730 Joined:Jun 2008	Message Posted: 10/15/2008 10:03:00 AM	Ignore hank1326 Report Abuse
	Diesel prices in Southern California dropped sharply and frequently for the last 10 days.
falconmb Champion Author Austin Posts:13,713 Points:408,825 Joined:Jul 2007	Message Posted: 10/15/2008 10:02:44 AM	Ignore falconmb Report Abuse
	hang in there, diesel
trucker090 Rookie Author Cleveland Posts:80 Points:61,030 Joined:Sep 2005	Message Posted: 10/15/2008 10:01:06 AM	Ignore trucker090 Report Abuse
	About time
SilverFoxHMT Sophomore Author Riverside Posts:210 Points:117,930 Joined:May 2008	Message Posted: 10/15/2008 9:59:50 AM	Ignore SilverFoxHMT Report Abuse
	Way to stick it to the diesel users! They just pass on the cost to us!
21597 All-Star Author Colorado Posts:642 Points:208,515 Joined:Sep 2005	Message Posted: 10/15/2008 9:58:41 AM	Ignore 21597 Report Abuse
	yup, conservation is the besthing WE can do for ourselves now and stay on congresses but to increase production
wizzard1222 Veteran Author St. Louis Posts:392 Points:704,750 Joined:Mar 2006	Message Posted: 10/15/2008 9:57:21 AM	Ignore wizzard1222 Report Abuse
	Crude below $75
markmoore80 All-Star Author North Carolina Posts:839 Points:289,265 Joined:Apr 2004	Message Posted: 10/15/2008 9:54:33 AM	Ignore markmoore80 Report Abuse
	Smells like speculation to me.
GooseMI Champion Author Grand Rapids Posts:1,708 Points:381,590 Joined:Sep 2007	Message Posted: 10/15/2008 9:53:18 AM	Ignore GooseMI Report Abuse
	Key word "profit". We all want and need profit, but at what price? Presently, profit seems excessive in all areas.
PTCruiserAZ Rookie Author Tucson Posts:5 Points:64,805 Joined:Aug 2008	Message Posted: 10/15/2008 9:51:51 AM	Ignore PTCruiserAZ Report Abuse
	It is difficult to understand, but it is a matter of supply in demand. Yes, Diesel is a by-product of gasoline, but you can only get about 20% of the barrel of oil for the Diesel.
marsjoe Sophomore Author Pittsburgh Posts:136 Points:96,095 Joined:Oct 2005	Message Posted: 10/15/2008 9:51:43 AM	Ignore marsjoe Report Abuse
	Just an other excuse to keep th epirce up!
tomok Champion Author Portland Posts:9,630 Points:719,110 Joined:Aug 2006	Message Posted: 10/15/2008 9:51:14 AM	Ignore tomok Report Abuse
	"positive diesel cracks overshadowed negative gasoline ones -- not all that uncommon in the shoulder season" diesel cracks? shoulder season? whatever.............. Anyway, diesel is too high and the price needs to go down, down, and down...