RE:Goldman: Raises Oil Target to $140 from $125Plus let us not forget that the US refineries are running at a historic high of 93% utilization which is unsustainable in the long run due to equipment needing maintenance, breakdowns, weather, etc.
With hurricane season upon us, we can expect no less than 10% of refinery capacity will be down for safety for at least a week or more. Plus if some refineries get hit it could easily be longer. Also the percentage being off line could go to 20-30 %. But the kicker is the low amount of oil and gasoline in storage and the system. This could result in gasoline surging to near $10 per gallon in certain areas!