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The End of a Tough Year
We have decided in this last Energy Report of 2009 to avoid a detailed review of the U.S. inventory levels for the week ending December 11 other than to say that LOOK….inventories are in great shape and demand is in terrible shape. Weather is unpredictable and we will leave it that way.
Suffice it to say that even if we have an abrupt return of the Ice Age (an anti Al Gorian principle) this winter, there is enough crude and distillates in on-shore storage to cover the entire U.S. heating oil requirements for all of the upcoming winter and there are the same levels of inventories in floating storage off shore as back up. So let’s move on.
Suncor announced that Husky will “buy” into the Ontario gasoline retail market with the purchase of 98 retail service stations in southern Ontario. Our comment is, ‘why would Husky do this when they have no Canadian refining capacity east of Prince George?’
By: Roger McKnight, Senior Petroleum Advisor
Where will Husky get supply for all these additional retail locations? Here’s our view of how this deal went down.
For our analysts’ views on the Suncor buyout of Petrocan, and what’s happening in the natural gas and electricity markets, sign up for the Weekly Energy Report. Send your email to info@en-pro.com.