Weekly Fuel Market Update (WFMU) | July 2nd, 2014
Better than expected diesel and gasoline inventories around the U.S. contributed to a decline in prices at the start of July after prices rose steadily throughout the month of May mainly due to news of threats to Iraq and it’s oil fields.
Group III and Gulf Coast Spot Markets seemed to buck the national trend this week as supply tightens due to refinery and pipeline problems throughout the Southwest.
Gasoline is tight in Albuquerque as local refineries ship fuel to surrounding regions to cover for outages. Problems with a major pipeline from the Gulf as well as news of an upcoming major refinery outage in Texas could tighten supply throughout the region over the next week.
The Big Spring refinery is slowly coming back online after a long turnaround. Long lines continue to plague the Magellan terminal in Midland/Odessa, but relief appears to be within site. The pipeline coming from Frost, Texas to Odessa is backed up but is expected to catch up soon. Diesel supply is great in El Paso, but gasoline is still tight.
Supply has tightened in the region due to refinery outages in surrounding states and pipeline problems. Prices are reflecting the tight supply.
Colorado – Front Range
No significant update this week.
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