Futures markets went up about 7 cents/gallon yesterday. Based on the persistent falling trend gasoline inventories, my expectation now is that most of the US and Canada will be seeing record retail prices this summer.
Even optimists have now turned pessimistic:
Large Draw in Gasoline Stocks
Boosts Crude Futures Higher
By MASOOD FARIVAR
April 25, 2007 4:33 p.m.
ConocoPhillips CEO Jim Mulva said he was concerned about the refining industry's ability to meet summer gasoline demand.
"We really have to run well," Mr. Mulva said during a first-quarter earnings conference call. "If you look at the supply-demand situation -- and hopefully we don't have weather-related issues -- the concern we have is whether we're going to be able to run and provide the supply we need during the summertime period."
Mr. Flynn of Alaron called the statement "a huge admission by a major refiner."
"This is something an analyst can say but when it comes from the CEO of Conoco, it makes you wonder how desperate the situation is becoming," he said.