Peak Oil Passnotes: Volatility Redux

Everyone was expecting a draw down in U.S. gasoline stocks. If you have been following our previous articles, you should understand why. Hurricanes smashed refineries. Refineries could not make petrol. Other refineries made lots to make up. Then they in turn were repaired this year. Ok, now you have been caught up.

Demand has not stopped growing in any major way. Therefore, the whole complex was sucking up as much as it could. In general, although to some extent it does not make sense, it means the price of oil goes up. So we smashed all records. We smashed the NYMEX, Brent, OPEC basket, Mexican basket and everyone else’s record price.

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