Latest news with #gasoline
Globe and Mail
2 hours ago
- Business
- Globe and Mail
US-China Trade Tensions and Fears of a Big OPEC+ Production Hike Weigh on Crude
July WTI crude oil (CLN25) Friday closed down -0.15 (-0.25%), and July RBOB gasoline (RBN25) closed down -0.0221 (-1.08%). Crude oil and gasoline prices today fell to 3-week lows. Dollar strength Friday weighed on crude prices along with the escalation of trade tensions between the US and China, the world's two largest crude consumers. Crude prices also came under pressure Friday after Reuters reported that OPEC+ is considering a July increase in crude production of more than an earlier projected +411,000 bpd. Losses in crude were limited after Libya threatened to shut down its oil production and exports after a militia group stormed the country's state oil headquarters. Also, the outlook for smaller US crude production is bullish for oil prices after Friday's weekly report from Baker Hughes showed active US oil rigs fell to a 3-1/2 year low. Crude prices fell Friday as an escalation of trade tensions between the US and China could lead to slower economic activity and reduced demand for crude. US Treasury Secretary Bessent said that trade talks with China were "a bit stalled," and President Trump accused China of violating its tariff agreement with the US. Crude prices came under pressure Friday after Reuters reported that OPC+ is considering an output increase for July that would be above the +411,000 bpd increase it agreed to for June. Weakness in the crude crack spread is negative for oil prices. Friday's crack spread fell to a 1-1/2 month low, discouraging refiners from purchasing crude oil and refining it into gasoline and distillates. Crude found support Friday after Libya's government said it may halt its crude production and exports in protest after a militia group stormed the state oil company's headquarters. Citigroup estimates that a shutdown of Libyan oil exports could result in a loss of up to 600,000 bpd of crude to global oil markets. Crude oil has support from comments from President Trump, who said that Russian President Putin was "playing with fire" for his continued attacks on Ukraine. CNN reported Tuesday that Mr. Trump could move ahead with new sanctions on Russia in the coming days. Also, Senator Graham said he has the votes in Congress to pass a sweeping sanctions bill against Russia that would slap a 500% tariff on any country that buys Russian energy products. Concern about a global oil glut is negative for crude prices, following Bloomberg's report last Thursday that OPEC+ is considering a 411,000 bpd crude production hike for July when it meets on May 31. On May 3, OPEC+ agreed to raise its crude production level by 411,000 bpd in June. Saudi Arabia has signaled that additional similar-sized increases in crude output could follow, which is viewed as a strategy to reduce oil prices and punish 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. OPEC+ had previously planned to restore production between January and late 2025, but now that production cut won't be fully restored until September 2026. OPEC Apr crude production fell -200,000 bpd to 27.24 million bpd. Doubts about a nuclear deal between Iran and the US supported crude oil prices. Iranian Supreme Leader Ali Khamenei said last Tuesday that he doesn't think negotiations with the US will succeed, and he urged the Trump administration to stop "talking nonsense." President Trump recently said Iran will face "something bad" if it doesn't quickly accept a US proposal over its nuclear program. Crude has support on the outlook for smaller global oil supplies after the US State Department recently slapped sanctions on an international network that facilitated the shipment of millions of barrels of Iranian oil to China. The State Department sanctioned the alleged Iranian front company called Sepehr Energy Jahan Nama Pars for using revenue from the sales of crude to fund the development of weapons, including ballistic missiles and drones, nuclear proliferation, and Iran's "terrorist proxies." A decline in crude oil held worldwide on tankers is bearish for oil prices. Vortexa reported Monday that crude oil stored on tankers that have been stationary for at least seven days fell by -4.2% w/w to 95.40 million bbl in the week ended May 23. In a supportive factor for crude oil prices, the US on January 10 imposed new sanctions on Russia's oil industry that could curb global oil supplies. Russian oil product exports in March rose to a 5-month high of 3.45 million bpd, according to data compiled by Bloomberg from analytics firm Vortexa. Weekly vessel-tracking data from Bloomberg showed Russian crude exports fell by -90,000 bpd w/w to 3.4 million bpd in the week to May 18. Thursday's EIA report showed that (1) US crude oil inventories as of May 23 were -6.2% below the seasonal 5-year average, (2) gasoline inventories were -3.1% below the seasonal 5-year average, and (3) distillate inventories were -17.4% below the 5-year seasonal average. US crude oil production in the week ending May 23 rose +0.1% w/w at 13.401 million bpd, modestly below the record high of 13.631 million bpd from the week of December 6. Baker Hughes reported Friday that active US oil rigs in the week ending May 30 fell by -4 to a 3-1/2 year low of 461 rigs. The number of US oil rigs has fallen over the past two years from the 5-year high of 627 rigs posted in December 2022.
Reuters
2 days ago
- Business
- Reuters
US ethanol output eases off record pace as summer travels heat up: Braun
NAPERVILLE, Illinois, May 30 (Reuters) - Record volumes of U.S. ethanol have been churned out since late last year, largely due to an uptick in exports and steady domestic demand. But output has slipped from those record levels over the last couple of weeks, coinciding with the ramp-up of the summer driving season. Luckily, large stockpiles of the corn-based fuel additive can offset some of the easing in output for now. However, both exports and domestic travel trends will need to be monitored in the coming weeks and months since this is when U.S. motor gasoline demand typically peaks. Over the four weeks ended May 23, U.S. ethanol production averaged roughly 1.026 million barrels per day. That is the best for the period in six years but behind the levels of six and seven years ago. Ethanol production typically dips at this time of year and output had been running at record rates from late last year through early spring, causing supplies to approach the 2020 records in March. U.S. ethanol stocks have since experienced a seasonal drawdown but remain at record levels for the date, with strong rates of both production and use somewhat offsetting each other. Huge exports have contributed to the elevated use levels in recent months. On the other hand, implied U.S. motor gasoline demand has not necessarily been impressive. Over the last couple of months, rates have been similar to the year-ago levels but well off the volumes before the pandemic, which was when demand for U.S. gasoline is thought is thought to have peaked. Increased fuel efficiency and post-pandemic changes in driving patterns – particularly remote working – have reduced U.S. gasoline consumption, an inherent threat to the U.S. ethanol industry. But the push for cleaner fuels abroad has been a bright spot. Although exports accounted for just 11% of U.S. ethanol produced in the 2023-24 marketing year, shipments reached record levels, supported by Canadian, British and Indian demand. Although exports have been the cornerstone of the U.S. ethanol industry this year, they have largely slowed below the year-ago levels in the last month or so, hitting an eight-week low last week. Exporters do have a cushion, as September-March shipments were easily a record for the period, up 26% on the year. However, this recent easing in ethanol exports could potentially be offset by a bump in U.S. gasoline demand this summer. As of April 2025, some 53% of Americans planned to take leisure vacations this summer versus 48% a year earlier, according to Deloitte's annual travel survey. This is despite a decline in their sense of financial well-being over the last year. The more frugal approach means that Americans plan to increasingly favor driving trips versus the previous few summers, including a higher frequency of trips as many are adding multiple short getaways. Gas prices are largely friendly for that effort, with the national average price for unleaded fuel sitting about 11% lower than a year ago. But consumer habits can abruptly shift whenever economic uncertainty spikes, and 2025 has been particularly rife with those risks. Karen Braun is a market analyst for Reuters. Views expressed above are her own.
Bloomberg
3 days ago
- Business
- Bloomberg
US Driving Season Starts Strongly for Oil Refiners
Welcome to our guide to the commodities markets powering the global economy. Today, Houston-based reporter Nathan Risser looks at how gasoline demand is shaping up for the key US summer months. The driving season in the US officially began Monday with the Memorial Day weekend. The initial data show more Americans hit the road compared with last year, a good sign for gasoline demand and the companies that make the fuel.
Wall Street Journal
3 days ago
- Business
- Wall Street Journal
U.S. Crude Oil Stockpiles Fall More Than Expected
U.S. crude oil inventories fell more than expected last week as exports increased, and gasoline stocks declined amid a seasonal pickup in demand, according to data released Thursday by the U.S. Energy Information Administration. Commercial crude oil stocks excluding the Strategic Petroleum Reserve fell by 2.8 million barrels to 440.4 million barrels in the week ended May 23 and were about 6% 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 fall by 600,000 barrels.
Reuters
3 days ago
- Business
- Reuters
US crude stocks, gasoline and distillate inventories fall
DENVER, May 29 (Reuters) - U.S. crude, gasoline and distillate inventories fell last week, the Energy Information Administration said on Thursday. Crude inventories fell by 2.8 million barrels to 440.4 million barrels in the week ending May 23, the EIA said, compared with analysts' expectations in a Reuters poll for a 118,000-barrel rise. Crude stocks at the Cushing, Oklahoma, delivery hub (USOICC=ECI), opens new tab rose by 75,000 barrels, the EIA said. Oil prices rose slightly after the EIA reported a surprise draw in stockpiles, but were still trading in negative territory. Global Brent crude futures were off 56 cents to $64.34 a barrel at 12:11 p.m. EDT (1611 GMT), while U.S. West Texas Intermediate (WTI) futures were down 65 cents to $61.2 a barrel . Refinery crude runs (USOICR=ECI), opens new tab fell by 162,000 barrels per day in the week, while utilization rates (USOIRU=ECI), opens new tab fell by 0.5 percentage points in the week to 90.2%, the EIA said. U.S. gasoline stocks (USOILG=ECI), opens new tab fell by 2.4 million barrels in the week to 223.1 million barrels, the EIA said, compared with analysts' expectations in a Reuters poll for a 527,000-barrel draw. Distillate stockpiles (USOILD=ECI), opens new tab, which include diesel and heating oil, fell by 724,000 barrels in the week to 103.4 million barrels, versus expectations for a 481,000-barrel rise, the EIA data showed. Net U.S. crude imports (USOICI=ECI), opens new tab fell last week by 532,000 barrels per day, EIA said.
