Tag Archive for: gasoline

supply concerns

Supply concerns and demand optimism are boosting oil prices

Oil prices surged this week as hurricane season began, demand improved, and both U.S. crude and gasoline inventories fell. This triggers supply concerns. Rising geopolitical risk around the world only added to bullish sentiment.

Friday, June 21, 2024

The onset of hurricane season in the US is improving demand figures. It is corroborated by shrinking crude and product inventories. It is becoming more visible Chinese buying have come together to lift oil prices to their highest since early May. The market was also reminded of the dysfunctional Red Sea navigation with the Houthis sinking another bulker this week, adding upward pressure to oil prices.

Chevron-Hess Merger Stalled by Arbitrage Delays.

Three months have passed since the case for a contract arbitration panel on Chevron’s planned takeover of Hess’ Guyana assets was filed. Still, there is no final arbitrator selected, delaying the $53 billion merger.

Alberto Becomes the New Scare for the Gulf. 

A storm system has made landfall in Mexico’s northeast regions. It is becoming the first named tropical storm of the 2024 Atlantic hurricane season, with Tropical Storm Alberto bringing heavy rains that disrupted lightering operations in Corpus Christi and Beaumont.

Here Comes the New PE-Backed Gas Giant.

US private equity giant Carlyle Group (NASDAQ:CG) will form a new Mediterranean-focused oil and gas company after purchasing Energean’s (LON:ENOG) assets in Italy, Croatia, and Egypt for $945 million, naming former BP boss Tony Hayward as its new CEO.

Europe Approves 14th Russia Sanctions Package.

The European Union approved a 14th package of sanctions against Russia that bans re-exports of Russian LNG in the EU, however steering clear of banning LNG imports per se, whilst also blocking any financing for Russia’s planned Arctic and Baltic LNG terminals.

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Source: Oil Price

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Crude oil futures rose Wednesday as Federal Reserve Chair Jerome Powell indicated that interest rates will likely come down this year.

Oil prices rise more than 1% on Fed rate cut outlook, signs of rising gasoline demand

Signs of Rising Gasoline Demand

Crude oil futures rose Wednesday. As Federal Reserve Chair Jerome Powell indicated that interest rates and signs of rising gasoline demand will likely come down this year. Though the central bank is moving cautiously.

The West Texas Intermediate contract for April gained 98 cents, or 1.25%, to settle at $79.13 a barrel. May Brent futures added 92 cents, or 1.12%, to settle at $82.96 a barrel.

Powell told the House Financial Services Committee Wednesday. That the Fed needs to see “a little more data” before moving on rates. Though he expects the central bank will begin loosening policy this year. As it gains more confidence that inflation is under control.

In prepared remarks, the Fed chairman said the central bank thinks rates have peaked. Lower interest rates typically stimulate the economy, which leads to more demand for crude.

Tamas Varga, an analyst at oil broker PVM, told clients in a note Tuesday that uncertainty surrounding interest rate cuts is “public enemy No. 1” of a protracted oil rally.

“The Fed chair’s testimony and the ECB interest rate decision on Thursday could revive hopes for a June reduction in borrowing costs,” Varga wrote in a research note.

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Source: CNBC

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US crude oil inventories rose modestly last week as refineries ramped up capacity use, according to data released Wednesday by the US EIA.

US crude oil stocks rise by 1.4M barrels in week ended March 1

Rose Modestly

U.S. crude oil stocks rose modestly last week. As refineries ramped up capacity use, according to data released Wednesday by the U.S. Energy Information Administration.

Commercial crude-oil stocks–excluding the Strategic Petroleum Reserve–were up by 1.4 million barrels, to 448.5 million barrels, in the week ended March 1, and were about 1% below the five-year average for the time of year, the EIA said.

Analysts surveyed by The Wall Street Journal had predicted crude stockpiles would rise by 1.3 million barrels.

Oil stored in the SPR increased by 706,000 barrels, to 361 million barrels.

The EIA estimated U.S. crude oil production at 13.2 million barrels a day, down by 100,000 from the previous week. Crude imports rose by 837,000 barrels a day, to 7.2 million barrels a day, while exports slipped by 91,000 barrels a day, to 4.6 billion barrels a day.

U.S. refineries ran at 84.9% of capacity, up from 81.5% the previous week.

Decreased More than Expected

Stocks of gasoline and distillate fuels decreased more than expected as demand rose. Gasoline stocks were down by 4.5 million barrels, at 239.7 million barrels, and were 2% below the five-year average, the EIA said. Demand for gasoline rose by 547,000 barrels a day, to 9 million barrels a day. Gasoline stocks were expected to decline by 1.4 million barrels, according to the Journal survey.

The EIA estimated U.S. crude oil production at 13.2 million barrels a day, down by 100,000 from the previous week. Crude imports rose by 837,000 barrels a day, to 7.2 million barrels a day, while exports slipped by 91,000 barrels a day, to 4.6 billion barrels a day.

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Source: Market Watch

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