Citgo to stop selling gas to U.S. stations

[Bluebear]

CARACAS, Venezuela - Venezuela-owned Citgo Petroleum Corp. has decided to stop distributing gasoline to some 1,800 U.S. stations, shedding a lackluster segment of its business while forcing the owners of those stations to find other suppliers.

While it may create some logistical headaches for gasoline retailers in the short term, the move should not have any impact on the nation's overall fuel supply. (Note: Riiiight.)

Citgo, which is wholly owned by Venezuela's state oil company, currently has to purchase 130,000 barrels a day from third parties in order to meet its service contracts at 13,100 stations across the U.S. This is less profitable than selling gasoline directly from its refineries.

Instead, the Houston-based company has decided to sell to retailers only the 750,000 barrels a day that it produces at three U.S. refineries in Lake Charles, La., Corpus Christi, Texas and Lemont, Ill., according to a statement late Tuesday.

http://news.yahoo.com/s/ap/20060712/ap_on_bi_ge/venezuela_citgo

[eppur_se_muova]

1. Crud. I've always preferred to buy from Citgo. nt

[lonestarnot]

2. Nice, wonder how much effect it will have on pump prices.

[uppityperson]

3. Let's see how long to $4/gal on tis news.

"no impact on the nation's overall fuel supply" but watch them prices soar. (breaks into song: Soar with the Eagles......)

[SidDithers]

4. When Joe Carter played for the Blue Jays...

he said he always liked hitting in Boston because of the Citgo sign over the monster.

He said that that to him it meant C-it-go.

Sid

[sharp_stick]

5. Love your avatar

I hadn't thought of ol' Sid in years. It makes me long for SCTV reruns.

[SidDithers]

8. Thanks,simskl...

I'm kinda partial to yours too :hi:

Sid

[killbotfactory]

6. so they will stop selling to some US stations

11,000 or so will still get gas.

[Robbien]

10. Yes, they will continue to supply the stations they own

they are only discontinue supplying gas to the independently owned stations. Makes sense.

[roamer65]

7. Venezuela will eventually sell Citgo

Chavez is working toward full nationalization of Venezuela's oil, which is a good idea. I think he eventually will sell off Citgo so he has no assets in the US that can be seized. Remember he's already taken all cash reserves out of US banks and put them elsewhere.

[donsu]

9. sorry bluebear I just posted this too - didn't see your post

my pc just crashed and coming back onto DU I didn't see your post