Latest news with #gasoline
Yahoo
10 hours ago
- Business
- Yahoo
Crude Oil Price Fall on Concern About Energy Demand
August WTI crude oil (CLQ25) on Tuesday closed down -0.99 (-1.47%), and August RBOB gasoline (RBQ25) closed down -0.0300 (-1.41%). Crude oil and gasoline retreated for a second session Tuesday, with gasoline dropping to a 2-week low. Crude oil prices are being undercut by concern that President Trump's tariff policies will lead to slower global economic growth and reduced energy demand. President Trump recently said that reciprocal tariffs will increase on August 1 for countries that have not clinched trade deals with the US. Tuesday's slide in the dollar index (DXY00) to a 1.5-week low helped to limit losses in crude oil prices. More News from Barchart Nat-Gas Prices Sink on the Outlook for Cooler US Temps and Higher Gas Production Crude Oil Prices Pressured by Concerns of Oversupply Crude Oil Prices Slip on Concerns of a Mounting Global Oil Supply Glut Stop Missing Market Moves: Get the FREE Barchart Brief – your midday dose of stock movers, trending sectors, and actionable trade ideas, delivered right to your inbox. Sign Up Now! Tuesday's global economic news was negative for energy demand and crude prices. The US July Richmond Fed manufacturing index unexpectedly fell -12 points to an 11-month low of -20, weaker than expectations of an increase to -2. Also, the ECB's quarterly Bank Lending Survey stated that loan demand in the Eurozone remained weak in Q2. Weighing on crude is the outlook for Iraq to boost crude exports from its northern Kurdish region through the Iraq-Turkey pipeline, where oil exports have been halted since March 2023. The Iraqi government approved a plan for the semi-autonomous Kurdish region to resume oil exports. Kurdistan expects to supply Iraq's crude market with 230,000 bpd of crude once exports resume. Iraq is the second-largest oil producer in OPEC. Crude prices have carryover support from last Friday when the European Union approved fresh sanctions on Russian oil due to its aggression against Ukraine. The sanctions package includes cutting off 20 more Russian banks from the international payments system SWIFT, as well as restrictions imposed on Russian petroleum refined in other countries. A large oil refinery in India, part-owned by Russia's Rosneft PJSC, was also blacklisted. Additionally, 105 more ships in Russia's shadow fleet were sanctioned, pushing the number of sanctioned ships above 400. Concern about a global oil glut is negative for crude prices. On July 5, OPEC+ agreed to raise its crude production by 548,000 barrels per day (bpd) beginning August 1, exceeding expectations of a 411,000 bpd increase. Saudi Arabia also stated that additional similar-sized increases in crude output could follow, which is viewed as a strategy to reduce oil prices and penalize overproducing OPEC+ members, such as Kazakhstan and Iraq. OPEC+ is boosting output to reverse the 2-year-long production cut, gradually restoring a total of 2.2 million bpd of production by September 2026. On May 31, OPEC+ agreed to a 411,000 bpd increase in crude production for July, following the same 411,000 bpd hike for June. June crude production rose +360,000 bpd to a 1.5-year high of 28.10 million bpd. In a supportive factor for oil prices, Bloomberg reported on July 10 that OPEC+ is discussing a pause in further production increases from October, following its next monthly hike in September of 548,000 barrels. OPEC+ may be concerned about a slowdown in global oil demand in the second half of this year that could lead to a supply glut if the group keeps boosting production. The International Energy Agency said inventories have been accumulating at a rate of 1 million bpd and that the global crude oil market faces a surplus by Q4-2025 equivalent to 1.5% of global crude consumption. A decrease in crude oil held worldwide on tankers is bullish for oil prices. Vortexa reported Monday that crude oil stored on tankers that have been stationary for at least seven days fell by -14% w/w to 66.31 million bbl in the week ended July 18. The consensus is that Wednesday's weekly EIA crude inventories will decrease by 1.5 million barrels, and gasoline supplies will decrease by 200,000 barrels. Last Wednesday's weekly EIA report showed that US crude inventories in the week ended July 11 fell by -3.859 million bbls, the first draw in three weeks. Gasoline inventories rose by +3.399 million bbls, and distillate inventories rose by +4.173 million bbls. The EIA report showed that (1) US crude oil inventories as of July 11 were -8.0% below the seasonal 5-year average, (2) gasoline inventories were -0.1% below the seasonal 5-year average, and (3) distillate inventories were -21.1% below the 5-year seasonal average. US crude oil production in the week ending July 11 fell -0.1% w/w to 13.375 million bpd, modestly below the record high of 13.631 million bpd posted in the week of 12/6/2024. Baker Hughes reported last Friday that the number of active US oil rigs in the week ending July 18 decreased by -2 rigs to a new 3.75-year low of 422 rigs. Over the past 2.5 years, the number of US oil rigs has fallen sharply from the 5.25-year high of 627 rigs reported in December 2022. On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
17 hours ago
- Business
- Yahoo
Crude Oil Prices Fall on Concern Tariffs Will Slow Growth and Energy Demand
Floating oil rig in ocean by Keri Jackson via Pixabay August WTI crude oil (CLQ25) today is down -1.01 (-1.50%), and August RBOB gasoline (RBQ25) is down -0.0306 (-1.44%). Crude oil and gasoline prices today are falling for a second session, with gasoline dropping to a 2-week low. Crude oil prices are being undercut by concern that President Trump's tariff policies will lead to slower global economic growth and reduced energy demand. President Trump recently said that reciprocal tariffs will increase on August 1 for countries that have not clinched trade deals with the US. Today's weaker dollar is helping to limit losses in crude oil prices. More News from Barchart Today's global economic news was negative for energy demand and crude prices. The US July Richmond Fed manufacturing index unexpectedly fell -12 points to an 11-month low of -20, weaker than expectations of an increase to -2. Also, the ECB's quarterly Bank Lending Survey stated that loan demand in the Eurozone remained weak in Q2. Weighing on crude is the outlook for Iraq to boost crude exports from its northern Kurdish region through the Iraq-Turkey pipeline, where oil exports have been halted since March 2023. The Iraqi government approved a plan for the semi-autonomous Kurdish region to resume oil exports. Kurdistan expects to supply Iraq's crude market with 230,000 bpd of crude once exports resume. Iraq is the second-largest oil producer in OPEC. Crude prices have carryover support from last Friday when the European Union approved fresh sanctions on Russian oil due to its aggression against Ukraine. The sanctions package includes cutting off 20 more Russian banks from the international payments system SWIFT, as well as restrictions imposed on Russian petroleum refined in other countries. A large oil refinery in India, part-owned by Russia's Rosneft PJSC, was also blacklisted. Additionally, 105 more ships in Russia's shadow fleet were sanctioned, pushing the number of sanctioned ships above 400. Concern about a global oil glut is negative for crude prices. On July 5, OPEC+ agreed to raise its crude production by 548,000 barrels per day (bpd) beginning August 1, exceeding expectations of a 411,000 bpd increase. Saudi Arabia also stated that additional similar-sized increases in crude output could follow, which is viewed as a strategy to reduce oil prices and penalize overproducing OPEC+ members, such as Kazakhstan and Iraq. OPEC+ is boosting output to reverse the 2-year-long production cut, gradually restoring a total of 2.2 million bpd of production by September 2026. On May 31, OPEC+ agreed to a 411,000 bpd increase in crude production for July, following the same 411,000 bpd hike for June. June crude production rose +360,000 bpd to a 1.5-year high of 28.10 million bpd.
Yahoo
a day ago
- Automotive
- Yahoo
High imports, soft summer demand weigh on US gasoline
By Nicole Jao and Shariq Khan NEW YORK (Reuters) -U.S. gasoline prices could fall below $3 a gallon this summer for the first time in over four years as a stretch of bad weather events dampens fuel demand and a jump in imports fills inventories. Gasoline prices have been in a lull in recent months, a boon for Americans traveling this summer. Consumers endured record prices at the pumps after Russia's 2022 invasion of Ukraine upended energy markets. Gasoline prices fell 8.3% over the 12-month period ended June, the latest Consumer Price Index report showed, as U.S. crude prices tumbled more than 20% amid concerns over lackluster demand and a trade war with China. Lower oil prices reduce the cost to refiners for producing motor fuels, with some of the savings typically passed on to consumers. U.S. President Donald Trump has promised to lower fuel prices, although analysts say presidents ultimately have little influence on pump prices. Fuel demand in the week ended July 4, typically among the periods of highest consumption, was down 2.5% from the same time last year. Analysts said the slowdown was likely due to extreme heat blanketing parts of the country, which may have discouraged some driving. The national average price of gasoline after the Independence Day holiday dipped to $3.14 per gallon, the lowest during summer months in four years, AAA data showed. Average gas prices across the U.S. have not fallen below $3 a gallon since May 2021. Summer is typically the peak season for gasoline consumption in the U.S., but gasoline product supplied, the U.S. Energy Information Administration's proxy for demand, has averaged 9.2 million barrels a day over the past four weeks, down by 1% from the same period last year. More fuel-efficient vehicles on the road and post-pandemic changes in driving patterns - particularly remote working - are expected to permanently reduce U.S. gasoline consumption from its peak of more than 9.3 million bpd in 2018. "As we head toward August, I think gasoline will see additional weakness," said Patrick De Haan, head of petroleum analysis at GasBuddy. "The national average has a good chance of falling below $3 per gallon in September," he added. That downward momentum could continue, De Haan said, as OPEC's decision to boost crude production by a larger-than-expected 548,000 bpd in August adds more pressure to oil prices. IMPORTS JUMP Imported gasoline flowing into the U.S. has also caused a surge in storage demand. Weekly U.S. gasoline imports peaked in mid-June at 100,700 bpd, the highest in over a year, government data shows, driven by an influx of shipments from Canada and Europe. Imports in June were up around 7% compared to the same period a year ago. In the U.S., demand for tanks to store gasoline has climbed since March, reaching a three-year high in June, according to data from storage broker The Tank Tiger. "If refiners are producing more gasoline, you need a place to park it if it's not being consumed," said Steven Barsamian, chief operating officer at The Tank Tiger. On the U.S. East Coast, which represents nearly a third of total U.S. consumption of refined products and relies heavily on imports to meet that demand, a steady stream of shipments helped pull gasoline prices about 5 cents a gallon under the national average, according to government data. Nigeria's Dangote oil refinery has ramped up production of gasoline that meets U.S. standards, boosting imports, and shipments from the 320,000-bpd Irving Oil refinery in New Brunswick have also landed at the New York Harbor consistently, GasBuddy's De Haan said. With limited pipeline and transportation capacity, the U.S. East Coast market typically gets oversupplied quicker than other markets in the U.S., The Tank Tiger's Barsamian said. An increase in flows on Colonial Pipeline's main gasoline artery, which delivers fuel from the U.S. Gulf Coast to East Coast markets, likely also contributed to larger flows of gasoline to the East Coast. Colonial Pipeline recently informed shippers it will boost capacity on Line 1 by 5% to 7% above typical summer volumes, according to a notice seen by Reuters. A Colonial spokesperson confirmed the pipeline volume increase. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Reuters
a day ago
- Automotive
- Reuters
High imports, soft summer demand weigh on US gasoline
NEW YORK, July 22 (Reuters) - U.S. gasoline prices could fall below $3 a gallon this summer for the first time in over four years as a stretch of bad weather events dampens fuel demand and a jump in imports fills inventories. Gasoline prices have been in a lull in recent months, a boon for Americans traveling this summer. Consumers endured record prices at the pumps after Russia's 2022 invasion of Ukraine upended energy markets. Gasoline prices fell 8.3% over the 12-month period ended June, the latest Consumer Price Index report showed, as U.S. crude prices tumbled more than 20% amid concerns over lackluster demand and a trade war with China. Lower oil prices reduce the cost to refiners for producing motor fuels, with some of the savings typically passed on to consumers. U.S. President Donald Trump has promised to lower fuel prices, although analysts say presidents ultimately have little influence on pump prices. Fuel demand in the week ended July 4, typically among the periods of highest consumption, was down 2.5% from the same time last year. Analysts said the slowdown was likely due to extreme heat blanketing parts of the country, which may have discouraged some driving. The national average price of gasoline after the Independence Day holiday dipped to $3.14 per gallon, the lowest during summer months in four years, AAA data showed. Average gas prices across the U.S. have not fallen below $3 a gallon since May 2021. Summer is typically the peak season for gasoline consumption in the U.S., but gasoline product supplied, the U.S. Energy Information Administration's proxy for demand, has averaged 9.2 million barrels a day over the past four weeks, down by 1% from the same period last year. More fuel-efficient vehicles on the road and post-pandemic changes in driving patterns - particularly remote working - are expected to permanently reduce U.S. gasoline consumption from its peak of more than 9.3 million bpd in 2018. "As we head toward August, I think gasoline will see additional weakness," said Patrick De Haan, head of petroleum analysis at GasBuddy. "The national average has a good chance of falling below $3 per gallon in September," he added. That downward momentum could continue, De Haan said, as OPEC's decision to boost crude production by a larger-than-expected 548,000 bpd in August adds more pressure to oil prices. Imported gasoline flowing into the U.S. has also caused a surge in storage demand. Weekly U.S. gasoline imports peaked in mid-June at 100,700 bpd, the highest in over a year, government data shows, driven by an influx of shipments from Canada and Europe. Imports in June were up around 7% compared to the same period a year ago. In the U.S., demand for tanks to store gasoline has climbed since March, reaching a three-year high in June, according to data from storage broker The Tank Tiger. "If refiners are producing more gasoline, you need a place to park it if it's not being consumed," said Steven Barsamian, chief operating officer at The Tank Tiger. On the U.S. East Coast, which represents nearly a third of total U.S. consumption of refined products and relies heavily on imports to meet that demand, a steady stream of shipments helped pull gasoline prices about 5 cents a gallon under the national average, according to government data. Nigeria's Dangote oil refinery has ramped up production of gasoline that meets U.S. standards, boosting imports, and shipments from the 320,000-bpd Irving Oil refinery in New Brunswick have also landed at the New York Harbor consistently, GasBuddy's De Haan said. With limited pipeline and transportation capacity, the U.S. East Coast market typically gets oversupplied quicker than other markets in the U.S., The Tank Tiger's Barsamian said. An increase in flows on Colonial Pipeline's [RIC:RIC: main gasoline artery, which delivers fuel from the U.S. Gulf Coast to East Coast markets, likely also contributed to larger flows of gasoline to the East Coast. Colonial Pipeline recently informed shippers it will boost capacity on Line 1 by 5% to 7% above typical summer volumes, according to a notice seen by Reuters. A Colonial spokesperson confirmed the pipeline volume increase.
Yahoo
a day ago
- Business
- Yahoo
Crude Oil Prices Slip on Concerns of a Mounting Global Oil Supply Glut
August WTI crude oil (CLQ25) on Monday closed down -0.14 (-0.21%), and August RBOB gasoline (RBQ25) closed down -0.0215 (-1.00%). Crude oil and gasoline prices on Monday settled lower, with gasoline dropping to a 2-week low. The outlook for larger crude exports from Iraq may boost global oil supplies and is weighing on prices. Expectations for increased Iraqi crude exports may also prompt Saudi Arabia to boost its crude exports to maintain its market share, further exacerbating a global oil supply glut. Losses in crude were limited Monday due to a weaker dollar and the rally in the S&P 500 to a new all-time high, which shows confidence in the economic outlook that is bullish for energy demand. More News from Barchart Crude Oil Prices Pressured by Concerns of Oversupply Nat-Gas Prices Sink on the Outlook for Cooler US Temps and Higher Gas Production Get exclusive insights with the FREE Barchart Brief newsletter. Subscribe now for quick, incisive midday market analysis you won't find anywhere else. Weighing on crude is the outlook for Iraq to boost crude exports from its northern Kurdish region through the Iraq-Turkey pipeline, where oil exports have been halted since March 2023. The Iraqi government approved a plan for the semi-autonomous Kurdish region to resume oil exports. Kurdistan expects to supply Iraq's crude market with 230,000 bpd of crude once exports resume. Iraq is OPEC's second-biggest oil producer. Crude prices have carryover support from last Friday when the European Union approved fresh sanctions on Russian crude exports and its energy trade over its war in Ukraine. The sanctions package includes cutting off 20 more Russian banks from the international payments system SWIFT, as well as restrictions imposed on Russian petroleum refined in other countries. A large oil refinery in India, part-owned by Russia's Rosneft PJSC, was also blacklisted. Additionally, 105 more ships in Russia's shadow fleet were sanctioned, bringing the total number above 400 ships. Concern about a global oil glut is negative for crude prices. On July 5, OPEC+ agreed to raise its crude production by 548,000 barrels per day (bpd) beginning August 1, exceeding expectations of a 411,000 bpd increase. Saudi Arabia also stated that additional similar-sized increases in crude output could follow, which is viewed as a strategy to reduce oil prices and penalize overproducing OPEC+ members, such as Kazakhstan and Iraq. OPEC+ is boosting output to reverse the 2-year-long production cut, gradually restoring a total of 2.2 million bpd of production by September 2026. On May 31, OPEC+ agreed to a 411,000 bpd increase in crude production for July, following the same 411,000 bpd hike for June. June crude production rose +360,000 bpd to a 1.5-year high of 28.10 million bpd. In a supportive factor for oil prices, Bloomberg reported on July 10 that OPEC+ is discussing a pause in further production increases from October, following its next monthly hike in September of 548,000 barrels. OPEC+ may be concerned about a slowdown in global oil demand in the second half of this year that could lead to a supply glut if the group keeps boosting production. The International Energy Agency said inventories have been accumulating at a rate of 1 million bpd and that the global crude oil market faces a surplus by Q4-2025 equivalent to 1.5% of global crude consumption. A decrease in crude oil held worldwide on tankers is bullish for oil prices. Vortexa reported Monday that crude oil stored on tankers that have been stationary for at least seven days fell by -14% w/w to 66.31 million bbl in the week ended July 18. Last Wednesday's weekly EIA report showed that US crude inventories in the week ended July 11 fell by -3.859 million bbls, the first draw in three weeks. Gasoline inventories rose +3.399 million bbls, and distillate inventories rose by +4.173 million bbls. The EIA report showed that (1) US crude oil inventories as of July 11 were -8.0% below the seasonal 5-year average, (2) gasoline inventories were -0.1% below the seasonal 5-year average, and (3) distillate inventories were -21.1% below the 5-year seasonal average. US crude oil production in the week ending July 11 fell -0.1% w/w to 13.375 million bpd, modestly below the record high of 13.631 million bpd posted in the week of 12/6/2024. Baker Hughes reported last Friday that the number of active US oil rigs in the week ending July 18 decreased by -2 rigs to a new 3.75-year low of 422 rigs. Over the past 2.5 years, the number of US oil rigs has fallen sharply from the 5.25-year high of 627 rigs reported in December 2022. On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on
