Ruh Roh

This is the state of gasoline stocks BEFORE Hurricane Ike.

Res ipsa loquitur.

###########################################################

OK, a bit of elaboration since it probably is not as self-evident as it seems to me. See the links below about the Colonial pipeline being shut in, and the extensive damage to the backbone of the electrical grid by Hurricane Ike. That ties in with the gasoline distribution system being very near Minimum Operating Level (MOL).

This is the point where bits of the system for moving gasoline around start shutting down because there is not enough physically present to make it flow through the supply chain. That level is around 170 million barrels or so but that is at the national level - it is very large and complex and not in perfect balance, so we are going to be experiencing localized shut downs and gasoline shortages starting now...


Graphic produced by Energy Information Administration
EIA Petroleum Week in Review: Gasoline

Dow Jones Newswire report on Ike related transmission line damage
Ike Leaves Widespread Power Outages; Review Begins

Reuters report on Colonial Pipeline closure
Colonial says oil product pipelines shut due to Ike