Title: Refined Products Market Update: Atlantic Basin Gasoline Markets--Has the Peak Passed?
URL(s):
http://www20.cera.com/eprofile?u=35&m=2481

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US PRODUCTION REBOUND IN MAY COOLS THE MARKET

Signs are emerging that the worst of this year's Atlantic Basin gasoline supply
crunch may have passed, just as the peak demand season starts. In CERA's view,
market developments in May demonstrate that there is sufficient refinery supply
capability in the Atlantic Basin to meet summer gasoline demand, as long as
refineries and pipelines operate smoothly. However, it is also clear that there
is very little flexibility in the system, particularly for fuels with the
tightest specifications and in regions with limited supply alternatives. Hence
CERA sees two potential paths for Atlantic Basin gasoline markets in the coming
months:

*  Smooth operations lead to margin/price moderation.

*  Further disruptive events cause renewed margin/price spikes.


**end**

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E-mail Category: Alert
CERA Knowledge Area(s): Global Oil

CERA's Spring 2001 Roundtable event dates and agendas are now available
at http://www20.cera.com/event

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