Peter Beutel Gasoline Quotations

Traders remain extremely nervous about gasoline supplies, especially with the switch to ethanol nationwide.

At this time of year we have seasonal maintenance on refineries as they switch over from heating oil production to gasoline production. Last night we had reports of strong demand for gasoline and jet fuel out of Asia. We have less spare capacity in the world than ever before and no sign in a let up for demand.

It does appear we've turned the corner here in this market. They're reacting to the fact that there was less damage than expected, rather than the amount of damage that did occur. Yes, it's going to take time to repair these refineries, and yes there will be at least one day we'll see prices run up. But I think we've probably seen the highest gasoline prices behind us.

We could be looking at gasoline lines and $4 gas, maybe even $5 gas, if this thing does the worst it could do,

We're still going to need to refine this oil into heating oil and gasoline before it really has an effect on us.