Submitted by Tyler Durden on 10/04/2012 - 14:54 Crude Exxon NYMEX
"The squeeze is on, and people are doing desperate things," is how one independent described the situation in California. As Bloomberg reports, a shortage of supply along with drastically higher wholesale prices of gasoline has caused 'mom-and-pop' gas stations to close down as their margins are destroyed.
*VALERO SAYS SUPPLY IN CALIFORNIA HAS TIGHTENED
*VALERO SAYS IT HAS TEMPORARILY HALTED SPOT SALES IN CALIFORNIA
The problem is likely a short-term one, according to some, thanks to the temporary shutdown of local refineries (after Chevron's Richmond refinery fire) and maintenance but it is clear that even a short-term blip in wholesale prices (whether driven by local supply or global geopolitics) causes pain as it would appear we are close to 'inelastic' levels of demand.
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http://www.zerohedge.com/news/2012-10-04/wholesale-gasoline-shortage-california-causes-gas-stations-shut-down-hoarding-next
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