Clipper Oil: Latest Fuel News - Gasoline Prices Stable, But Expected To Fall As Summer Ends

Latest Fuel News

August 2020

Gasoline Prices Stable, But Expected To Fall As Summer Ends

Gasoline prices have likely peaked and should begin to fall as demand wanes with the end of the peak summer driving season, according to fuel price tracking website GasBuddy.

Prices were unchanged in Houston over the past week, despite the shutdowns of major refineries in southeast Texas and Louisiana because of Hurricane Laura. Gasoline averaged $1.80 a gallon Houston Monday, down a penny from a month ago and 46 cents from a year ago. Continue reading here (Source: Houston Chronicle).

Prices Surge Then EBB In Wake of Hurricane Laura

Oil markets rose midweek like a storm surge in anticipation of Hurricane Laura, fed by reductions in inventory and pre-storm buying. Laura hit Louisiana as a Category 4 hurricane early on Thursday morning. Approximately 500,000 residents were ordered to evacuate. Prices ebbed on Thursday and into Friday morning, but they are stabilizing and strengthening today. West Texas Intermediate (WTI) crude oil futures appear to be maintaining their hold around $43 a barrel. This should afford another finish in the black this week. Gasoline and diesel prices ebbed after their midweek spike, though buying and prices are picking back up today. Gasoline prices appear to be holding on for a finish in the black, while diesel prices are heading for a finish in the red. Continue reading here (Source: Fuel Market News).

Could We See a 'Second Wave' of Petrol Price Cuts?

While health experts are concerned about a ‘second wave’ of COVID-19, oil and gas analysts say round two of petrol price cuts could soon appear at forecourts across the UK. According to the AA, fears over a resurgence of coronavirus infections will drive down wholesale oil prices over the coming weeks. The savings will be passed on to motorists, with supermarket retailer Asda already starting to reduce pump prices. Continue reading here (Source: Petro Industry News).

The Berkshire Bet on Oil

Oil is coming back as global demand is rising and the U.S. energy industry bounces back from Hurricane Laura. Yet the Atlantic still looks scary with more storms brewing and Covid-19 concerns raising doubts that the demand growth can continue. A bet by Warren Buffet on Japan trading companies seems to be a big bet on commodities, meaning the Wizard of Wall Street sees value in this space. Continue reading here (Source: Futures Magazine).

The World’s Top Oil Importer Is Turning Its Back On Saudi Arabia

In recent months, the world’s biggest oil exporter, Saudi Arabia, has lost market share in China to the United States as the world’s top oil importer has boosted imports from America and reduced purchases from the Kingdom.

China has imported record volumes of crude oil in recent months, taking advantage of the lowest crude prices in two decades in April stock up on dirt-cheap oil.

In their bargain-hunting for low-priced oil, Chinese state oil giants and independent refiners alike snapped up cheap U.S. cargoes in April, which were loaded in May, started to arrive in China in June, and set records in July. Continue reading here (Source: Yahoo News).

Changing Demand For Petroleum Products Has Led To Operational Changes At U.S. Refineries

Demand for transportation fuels in the United States has fallen since mid-March because of the spread of coronavirus and efforts to mitigate it. Demand for motor gasoline and jet fuel in particular has fallen to its lowest levels in years. In response, U.S. refineries reduced their operations to adjust to changing levels of overall demand for petroleum products and made other changes that resulted in proportionately less production of motor gasoline and jet fuel and more production of distillate fuel oil. Continue reading here (Source: EIA).