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HOUSTON (Dow Jones)–Sunoco Inc. (SUN) swung to a third-quarter loss on a host of charges and continued weak demand for oil-based fuels and chemicals.
Those difficulties are expected to continue amid the economy’s weakness, said Chief Executive Lynn Elsenhans.
“As we consider the outlook for the rest of the year and into 2010, we do not anticipate significant improvement in the refining market,” Elsenhans said during a call Thursday with analysts.
Last month, Sunoco became the first oil company to say it will close a U.S. refinery, a ploy aimed at getting that segment to break even this year. All of the units at Eagle Point plant in Westville, N.J., ceased production this week, Elsenhans said.
via UPDATE:Sunoco Posts 3rd-Quarter Loss On Refining, Chemical Woes – WSJ.com.
So demand for crude is down so much that we’re actually closing refineries in this country, but the price of crude is up 150% since the beginning of the year. Makes sense, right?
Thanks to my friends in the commodities business for pointing this out. We continue to see pricing in the commodities markets that is disconnected from reality, which makes it all the more distressing that the bill currently being shepherded though Barney Frank’s Financial Services Committee (and which still has to be reconciled with an AG committee bill) seemingly doesn’t do a whole lot to correct these problems. More on this later, right now I have to go remove the railroad spike I just drove into my eye after reading the story that Alex Rodriguez apparently has a portrait of himself in the form of a centaur hanging in his bedroom.
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Matt, are you trying to make me feel bad about my Minotaur portrait of myself hanging in my breezeway? First of all, it was a gift and second, the horns bring out my pecks.
btw — Barney Frank is a joke and A-1 hypocrite — that guy pretends to be all righteous but he has sold America down the river just as many of times as all the others. Honestly, give me 3 months and control of the DOJ, I can can change Wall Street. People just don’t understand how bankers and hedge managers (and politicians) hate search warrants and 5am knocks on the door.
Yep…Bwaney Fwank epitomizes hypocracy. His fingerprints are all over the collapse of the mortgage industry, yet he’s quick to point the blame elsewhere. We’d be better off if he’d just go back to trolling for prostitutes–maybe he wouldn’t have time to fuck us too.
If I’m not mistaken, I’ve been reading break even barrel price on oil is about $70. It’s not about $80. More food for thought on this story.
Typo correction. Spot price is NOW about $80.
keep going Matt. The public masses are still unaware of what Goldman is doing. Keep the microscope on them. As the ranks of the unemployed swell, their anger will turn where it needs to be directed.
Its actually pretty easy to tell Goldman Sachs trading position- at least with respect to oil. Just listen to my favorite Goldman “analyst” Arjen Murti. When Goldman is net long, he issues his pre-canned tome about long term oil shortages, global warming, armageddon and the prospect of $200 per barrel crude. When the fellas trading the paper are certain they have blown up the beach ball until it’s ready to pop, they reverse field to net short and their boy Arjen pronounces a short term oil glut- and issues a proclamation that $50 a barrel is more like it, at least for the short term. I know that sounds alot like the old “pump and dump”; but hey, being a “really smart guy” is tough. It’s God’s work.