spec changes limit supply sources in short run
Demand outside U.S. growing faster than
SLooking at the larger import picture, this
chart summarizes the factors that will either work to push gasoline imports
up or down.
SIn the short term, we expect imports to be
available, but potentially at a less attractive price due both to loss of
suppliers and to our need for cleaner or higher-value products.World demand growth and competition for
those volumes will also add to price pressure.
SAs always, transitions to new fuel
specifications give rise to the potential for short-term supply problems as
the market adjusts to the change.We
move to 30 ppm refinery average specifications in 2005.Will we see some additional market
tightening?We still dont know.Credits and allocations allow suppliers to
use higher sulfur imports, but the available supply sources may be even less
than seen this year.We will be
watching this transition closely as we have the last several transitions.