Roger Diwan
Roger Diwan
crunch driven global market product situation united
The crunch is on refineries. The global market right now is driven by the product market in the United States, which is why the situation is pretty bad.
caused damage effect fear hit ivan lack lingering market perception reality
Ivan had a long, lingering effect because of the damage it caused and because it hit the market with a perception - and a reality - of a lack of supplies. In that sense, it heightened the fear of hurricanes this year.
gold happened prices
Gold prices don't go up just because jewelers need more gold, they go up because gold is an investment. The same has happened to oil.
blow delicate
Restarting a refinery is a very delicate operation. These things can blow up. They are complicated, old and cranky.
cannot demand everybody looking manage market seeing spare supply
OPEC is an anachronism today. This is not a market where suppliers have to manage any spare capacity. They cannot manage the short-term risk, which is going to be on the upside. What we're seeing here is a demand shock, but everybody is looking to OPEC as if it were a supply shock.
katrina reminder system tight
This was a big reminder of how tight the system is. And what Katrina did is make the system even tighter going forward.
depend high lost prices quickly supplies time
We have lost a lot of supplies at a time when we were very vulnerable. How high prices go will depend on how quickly refiners can get back on.
depend high prices quickly supply
We have a supply shock. How high prices go will depend on how quickly refiners can get back on.