- A New Look at the ‘New Poor’
- Six Pack: Beer Buzz of the Week
- Greek Exit Could Trigger 50% Fall in Euro Stocks: Analyst
- Under Pressure, FHA Skews to Wealthier Home Buyers
- Big Stock Upside for Hudson City Deal: Analyst
- 5 High-Yield Stocks Ready to Boost Dividends
- Yoshikami: Four Things You Need to Know About Gold Now
- Steinbock: The Euro Zone Endgame Begins
- Option Bulls Take Another Shot on Idenix
- Citigroup Lost $20 Million on Facebook IPO Trades
- Sticker Shock: What College Is Likely to Cost in 18 Years
- Icahn Raises Stake in Chesapeake, Wants Board Seats
- Week Ahead: Europe Has Wall Street Bull on Short Leash
- What Happened to Stocks? Most Unloved in 50 Years
- Break Up JPMorgan: Sheila Bair
- Main Players in the Greek Election
- Many Greeks Moved Their Money Abroad Long Ago
- Bankia Asks Spain for $24 Billion Bailout
MOST SHARED
- Citigroup Lost $20 Million on Facebook IPO Trades
- Spanish Lender Seeks 19 Billion Euros; Ratings Cut on 5 Banks
- Astronauts Snare SpaceX Rocket
- Carl Icahn Increases Stake in Chesapeake, Demands Board Seats
- Marc Faber: 100% Chance of Global Recession
- The Key to a Successful Turnaround
- Your First Move For Tuesday May 29th
- Oil Declines, but Doesn't Help European Consumers
- Senate Summons Dimon to 'Get to the Bottom' of JPM Mess
- Kansas City Fed President Steps Into Jamie Dimon Debate
Refinery Logjams -- Not Crude Prices -- Drive Gasoline Higher: Analysts
Text Size 
News Writer
Stephen Schork, editor, The Schork Report, told CNBC’s “Morning Call” that limited refinery capacity -- not short supplies of crude oil -- are driving gasoline prices higher.
“The market is not concerned about the future availability of crude oil,” Schork said Tuesday. “What they are concerned about is the future availability of gasoline and distillate, because our refineries have not been running at full tilt.”
The failure to refine enough gasoline means crude oil stocks have been building and U.S. supplies, including the Strategic Petroleum Reserve, now total about 1.44 billion barrels -- a nine-year high.
A severe hurricane season could damage refineries along the Gulf Coast, disrupting supply and sending gasoline prices higher. But Schork said if this storm season is mild like last year's, crude oil prices could fall to $55 per barrel late this year, because of the large supply on hand.
Kevin Kerr, editor of Resource Trader Alert, offered a similar view.
“This is a refinery issue,” Kerr said. “Refining capacity -- we’ve seen that dropping even though we’ve seen this build in [crude] oil supply. Gasoline is certainly the big driver here right now. In the fall, it will be heating oil like it is every year. There is no margin for error.”
Crude oil recently fetched $72.63 on the New York Mercantile Exchange, up 44 cents.
- The Nasdaq has suffered the most from the EU crisis showing there's risk in the usual tech stocks.
- Targeting more Millennials is just one of the items brewing for consumers in the world of spirits.
- It seems many people may need a reminder of how NOT to act on a plane. Here are a few tips.
- Here are some very unusual roadside stops along American highways that might peek your interest.
- How three generations of Americans are dealing with the finances of retirement.
Data is a real-time snapshot *Data is delayed at least 15 minutes
