All articles tagged with #fuel demand
Oil prices are under pressure despite expectations of an OPEC+ deal extension, with Memorial Day failing to boost fuel demand and Brent futures facing another weekly loss. Key developments include ConocoPhillips' acquisition of Marathon Oil, Saudi Aramco's partial stake sale, and a US investigation into alleged OPEC collusion.
Crude oil prices rose due to stronger-than-expected fuel demand in the U.S., driven by increased air travel and real-time mobility data. Brent crude reached over $83 per barrel, while West Texas Intermediate neared $79 per barrel. Analysts attribute the rally to OPEC+ production cuts, potential U.S. interest rate cuts, and geopolitical tensions in the Middle East. The extension of OPEC+ cuts is expected to continue, with traders closely monitoring the U.S. driving season.
Gas prices in Michigan have hit a yearly high for the third consecutive week, with the statewide average for regular unleaded gas at around $3.65 per gallon. The spike is attributed to increased gas demand and a decrease in total gas stocks, as well as the annual switch from cheaper winter fuel to more expensive summer fuel. Drivers are feeling the impact as they prepare for spring break travel, with hopes that prices will eventually dip below $3 per gallon later in the year.
Gasoline prices in the US are rapidly increasing, with the national average climbing 11 cents in the past week to $3.28 a gallon, the highest in nearly three months. This rise is attributed to both normal factors such as increased demand and the switch to more expensive summer fuel, as well as abnormal factors like refinery outages limiting supply. The trend could complicate the Federal Reserve's efforts to control inflation and challenge the White House's economic message. Experts predict that gas prices will continue to rise, potentially reaching between $3.50 and $3.75 a gallon this summer, barring any major disruptions in crude oil supply.
Oil prices dropped by 4% and reached their lowest levels since June due to concerns over fuel demand, exacerbated by a larger-than-expected rise in U.S. gasoline inventories. Brent crude fell below $75 a barrel for the first time since July, while U.S. crude dipped below $70 for the first time since July. The drop in prices was also influenced by worries about China's economic health and a wider trade deficit in the U.S. In addition, Russian President Vladimir Putin traveled to the UAE and Saudi Arabia to discuss oil and OPEC+.
China's crude oil imports increased by 13.5% year-over-year in October, reaching 11.53 million barrels per day (bpd), driven by stronger fuel demand during a week-long holiday and the utilization of new oil import quotas. The imports in September also rose by 14% annually, but were lower than the record-high volumes seen in August. Refiners stocked up ahead of the holiday, leading to robust crude oil imports in October as well.
Gas prices in the US continue to decline slowly due to stagnant demand at fuel stations and decreased oil prices. The national average now stands at $3.44 per gallon, the lowest since March. AAA expects further price drops, with some gas stations already selling regular gas below $3 a gallon. The decrease in gas prices is attributed to seasonal factors, including declining gasoline consumption and the switch to winter gasoline. GasBuddy predicts a potential decline of another 10 to 20 cents in the coming weeks, barring any escalation of violence in the Middle East.
The average price of a gallon of self-serve regular gasoline in San Diego County has spiked by 12.7 cents, reaching its highest amount since October 2021. The average price has been on the rise for 51 out of the past 55 days, increasing by a total of 87 cents. The national average price also rose slightly, with oil costs putting upward pressure on pump prices, although demand remains lower.
The national average price of gasoline has risen to $3.57 per gallon, while the national average price of diesel has fallen to $3.87 per gallon. With the Federal Reserve meeting this week to potentially alter interest rates again, oil markets were trading lower, and gasoline prices could be impacted. Gasoline demand remains above the critical 9-million-barrel-per-day mark, putting upward pressure on average prices. Meanwhile, diesel prices have fallen to their lowest since early 2022, helping to relieve some pressure on hard-hit consumers of diesel.
Oil prices rose after Saudi Arabia's energy minister warned short sellers to "watch out" for pain, raising the prospect of further OPEC+ output cuts. U.S. crude oil and fuel inventories fell sharply, with crude inventories falling about 6.8 million barrels and gasoline inventories dropping about 6.4 million. If confirmed by the Energy Information Administration, U.S. gasoline inventories would have declined for the third consecutive week to their lowest pre-Memorial Day levels since 2014, ahead of peak summer travel and higher fuel demand.
Oil prices rose by nearly 2% after Saudi Arabia's energy minister warned short sellers to "watch out" and as seasonal demand for fuel is set to rise at the start of the U.S. driving season this weekend. WTI broke past $73 and Brent climbed above $77. The warning comes ahead of the OPEC+ meeting on June 4, and after the group sent oil prices soaring with a surprise cut in April. Analysts suggest that speculators may be wary of carrying too many shorts into the next OPEC+ meeting.
U.S. gasoline and diesel inventories are below the five-year average, indicating strong fuel demand and supporting crude oil prices and U.S. refining margins. Despite optimistic views on summer fuel demand, oil prices have fallen due to concerns about the economy and high interest rates. However, the International Energy Agency predicts a tightening market in the second half of the year, with demand expected to exceed supply by almost 2 mb/d. Refining margins have fallen since Q4 2022 but remain higher than historical norms, and U.S. refiners are optimistic about cracks going forward.
Oil prices settled higher on Monday as investors grew optimistic about fuel demand in China due to holiday travel. Brent crude settled up 1.3% at $82.73 a barrel while U.S. West Texas Intermediate crude settled up 1.1% at $78.76. Chinese customs data showed record volumes of imports in March, and bookings for trips abroad during the upcoming May Day holiday point to a continued recovery in travel to Asian countries. Additionally, planned output cuts by the OPEC+ alliance and supply tightness could lift prices in the coming days.
Oil prices fell over 1% due to concerns about rising interest rates, the global economy, and fuel demand, outweighing support from the prospect of tighter supplies on OPEC+ supply cuts. Weak US economic data and disappointing corporate earnings from the tech sector sparked growth concerns and risk aversion among investors. Central banks from the US to Europe are expected to raise interest rates in May to tackle stubbornly high inflation. China's bumpy economic recovery from COVID-19 also clouded its oil demand outlook. Nevertheless, analysts and traders remained bullish about China's fuel demand recovery towards the second half of 2023 and as additional supply cuts planned by OPEC+ from May could tighten markets.
Oil prices have plunged to their lowest point since late March due to apprehension surrounding the possibility of an economic recession and lower fuel demand. The increase in the number of Americans filing for new claims of unemployment benefits and a sharp fall in factory activity in the mid-Atlantic region are among the bearish indicators. Some analysts initially thought the weakness was attributed to the market pricing in the OPEC+ output cuts.