Movement of products around the US as a result of Jones Act waivers, four weeks after Hurricane Sandy, continues to have a role in the weekly Energy Information Administration weekly report. It’s the second week in a row where movements under the Jones Act waiver are being viewed as a factor in the final numbers. You can read the Platts analysis here.
Posts Tagged ‘Sandy’
By News Desk | November 28, 2012 01:25 PM Comments (0)
By News Desk | November 21, 2012 02:18 PM Comments (0)
There was a question when the Jones Act was waived — to allow freer movement of product from the Gulf Coast to the beleaguered Sandy-hit Atlantic Coast — whether it would make much of a difference. This week’s Energy Information Administration report certainly indicates there was an impact. You can read Platts’ analysis of this week’s statistics here.
By Elizabeth Bassett | November 8, 2012 01:35 PM Comments (0)
For someone who lives in Houston, I spend an inordinate amount of time paying attention to the weather in the Northeast. I’m not alone, either: many of my colleagues write about markets in the Northeast, and many of the traders I know who specialize in the Northeast are actually based in Houston.
For the past two weeks, Superstorm Sandy (a much catchier name than “Hurricane Sandy”) and the first nor’easter of the season, Athena, have wreaked havoc on the Northeast. I cover cash natural gas markets in the Northeast, and my colleague, Lettie Vasquez, focuses on forward markets. Like many others, we’ve already boarded the roller coaster for winter gas price volatility. You can listen to our podcast on the issue here.
By John Kingston | November 2, 2012 08:43 AM Comments (0)
As the week ends, here are a few things going on with Sandy and oil markets that are trying to get back to normal.
Several developments Thursday showed companies were taking significant steps to go around the power problems in the New York area. Most facilities in the area — particularly those in the whole New Jersey-Staten Island corridor — continue to struggle with no power, flooding, or both. By the end of the day Thursday, though, there was a fair amount of good news. Buckeye Pipelines said it had restored most of its eastern pipeline system. It doesn’t have power at its Linden, NJ terminal, but it brought in generators to allow the terminal partial operations.
By John Kingston | November 1, 2012 04:30 PM Comments (0)
It’s hard during the events of Superstorm Sandy to worry too much about what happened in oil markets last week. It seems like eons ago. So consider this week’s EIA data and analysis of it to be like looking at a past that was very different from the present, even though it was only a few days ago. (That reminds us of the famous statement of the noted quipster and baseball reliever, the late Dan Quisenberry, who said: “I’ve seen the future and it’s much like the present, only longer.”)
Next week’s report, discussing what happened the week of Sandy, ought to be very interesting. But you can read our analysis of last week’s numbers here.
By John Kingston | October 31, 2012 08:56 PM Comments (1)
It’s beginning to be clear that concerns about docks in Sandy were unfounded; concerns about refineries have mostly turned out to be not a problem; but terminals in the New York area are a real mess.
The Department of Energy put out a list of East Coast terminals today, and while there are open ones outside the New York area, there aren’t any open directly in New York or across the water in New Jersey. Terminal after terminal is reporting no power and lots of water. It’s that situation that is clearly making gasoline a near-impossible product to find in parts of New Jersey and New York, particularly Long Island.
By John Kingston | October 30, 2012 07:49 PM Comments (0)
A few observations on day 2 of Sandy:
–Our blog Monday regarding Phil Verleger’s comments received a tremendous number of hits. But the market appeared to go in a different direction Tuesday, with “demand destruction” being the new watchword. As Platts’ Matthew Kohlman, Wajih Choudhury and David Henry reported, most differentials to benchmark NYMEX prices dropped. Gulf Coast ULSD fell 2 cents to December heating oil futures minus 3.75 cent/gal. Heating oil dropped 50 points for New York Harbor barges to November plus 1 cent/gal. Gulf Coast heating oil dropped 4.20 cents to December minus 10.75 cents/gal.
There were some differentials that increased, but clearly, softness was the order of the day. Traders repeatedly cited the realization in the markets that activity in the entire New York/New Jersey region–people going to work, going to school, going to wherever–is going to take a several-days holiday, and with it, some demand for transportation fuels will decline. (To say nothing of the demand for heating oil in houses that have no power, and therefore no way of running their boilers). So whereas tight inventories and lost production were heard most on Monday, Tuesday was all about the demand that will go away.