All articles tagged with #refinery maintenance
Oil prices increased by about 1.5% after OPEC+ announced a smaller-than-expected production increase of 137,000 barrels per day for November, which helped temper supply concerns. However, analysts predict that near-term gains will be limited due to weak demand prospects in the fourth quarter, partly due to refinery maintenance and seasonal factors, with ongoing geopolitical tensions also influencing the market.
Gas prices in California have surged due to the switch to the summer blend, refinery maintenance, high taxes, and international events impacting the global oil market. The state's average gas price has risen close to 30 cents a gallon in the last week, significantly higher than the national average. Experts expect prices to stabilize and potentially decrease after Memorial Day, once refinery maintenance is completed and the switch to the summer blend is over.
The global oil market could experience some relief in the next two months as refineries schedule end-of-summer maintenance, easing supply tightness, according to Vitol's CEO, Russell Hardy. However, the sour crude market will remain tight due to ongoing production cuts by Middle Eastern OPEC+ members. The scarcity of sour crude, mainly sourced from the Middle East, is impacting complex refineries in India, Kuwait, Jizan, Oman, and China. The tightening market for sour crude in Asia is exacerbated by Kuwait's reduced exports and the production cuts by major sour crude producers like Saudi Arabia and Iraq. This has led to price volatility in the oil market, primarily driven by refining capacity constraints.
The national average U.S. gasoline price fell slightly by 0.3 cents per gallon last week, but declines are likely to be temporary, according to Patrick De Haan, head of petroleum analysis at fuel-saving app GasBuddy. The start of the second half of the refinery maintenance season could also move gasoline prices higher in some states, he added.