"OPIS Price Watch Alert"

2000-01-31 15:26:30 EST

***KOCH RESTRICTS SALES OF LOW-SULFUR DIESEL

Koch Petroleum has told its Texas customers that it will begin restricting sales of low-sulfur diesel. The policy starts at 3:00 p.m. January 31, 2000 and "will be in place until further notice." The terminals affected by the restrictions are Koch owned facilities in Corpus Christi, San Antonio, Austin, Waco, and Ft. Worth.

Koch tells customers that no allocation will be available for wholesale customers for low-sulfur diesel at these terminals. That means that some customers have been completely cut off. At the very least, incremental sales to non-contract customers have been severed and liftings to contract accounts will be closely monitored. One contract customer tells OPIS he has been cut off.

There is no reason given by Koch to its customers for the sudden allocation. OPIS checked with sources and there are no reports of any refinery production problems at Koch's Corpus Christi, Texas refinery.

Customers do confirm that Koch's prices for low-sulfur diesel have been among the cheapest in the market over the last week to ten days. "They have probably sold more barrels than they intended to sell," said one Koch customers. The customer confirmed that at five terminals where he lifts product, Koch's price has been the cheapest "five of the last six days."

Now...are we talking about waiting for a better price, or is there a problem with them getting it? I wonder.

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Check out the ezboard. There is a post from DD-light brought in from another board, plus lots of refinery news.

-- Y2kObserver (Y2kObserver@nowhere.com), February 02, 2000

Answers

Seems to me that they would rather sell at a higher price in the Northeast where there is more demand, than cheap in Texas where demand is lower? (Not a statement, but rather a question.)

-- Birdlady (Birdlady@nest.home), February 02, 2000.

How do I get to the "ezboard"? : TNX

>"<

-- Squirrel Hunter (nuts@upina.cellrelaytower), February 02, 2000.

Downstreamer's forum Link

-- Possible Impact (posim@hotmail.com), February 02, 2000.