|SThe unusual distillate price strength this
past year was not limited to the U.S.
Heating oil prices on both sides of the Atlantic and in Asia (not
shown) exceeded gasoline prices through late summer.
|SThe provocative question is whether this
highly unusual gasoline/distillate price situation in summer 2005 stems from
a temporary situation or is the beginning of a more fundamental shift in the
relative pricing of these primary light refined products.
|SWe have all been watching the growth in diesel
demand, and at some point, price for diesel will have to rise relative to
gasoline to produce the incentives needed to shift refinery investment
towards more distillate production. Is
this the beginning of that situation?
|SEurope is highlighted on this chart because it
plays an important role in world and in particular Atlantic Basin markets.