Latest Fuel News
June 2021
Oil Falls 2% on Rising COVID-19 Cases, Ahead of OPEC+ Talks

Oil prices fell 2% to a one-week low on Monday after hitting their highest since 2018 earlier in the session, as a spike in COVID-19 cases in Asia and Europe put a brake on the rally before this week's OPEC+ meeting.

Brent futures fell $1.50, or 2.0%, to settle at $74.68 a barrel, while U.S. West Texas Intermediate (WTI) crude fell $1.14, or 1.5%, to settle at $72.91.

Those declines pushed both contracts out of overbought territory and were their lowest closes since June 18. Earlier in the volatile session, both benchmarks rose to their highest levels since October 2018. Continue reading here (Source: Reuters).
Average US Gas Price Rises to USD3.15/gallon

The average U.S. price of regular-grade gasoline rose 2 cents over the past two weeks to $3.15 per gallon.

Industry analyst Trilby Lundberg of the Lundberg Survey said Sunday that the uptick is about one-third of the amount that crude oil prices rose over the same timeframe. A similar rise is likely to occur in the coming days, and additional price hikes in the future may be larger as wholesale prices increase and some states’ fuel taxes grow beginning July 1.

Nationwide, the highest average price for regular-grade gas is in the San Francisco Bay Area at $4.33 per gallon. The lowest average is in Baton Rouge, Louisiana, at $2.63 per gallon. Continue reading here (Source: News Nation USA).
European Union Enshrines Net Zero and Emissions Targets Into Law

The European Council adopted a climate change law Monday that legally obliges its 27 nations to collectively slash greenhouse emissions by 55% by 2030 -- from 1990 levels -- and to become a net-zero-emissions economy by 2050.

The European Union and several other nations increased pledges to cut greenhouse gases and reach carbon neutrality at a virtual climate change summit hosted by US President Joe Biden in April. But there have been concerns over whether world leaders would win the backings of their parliaments to actually enshrine the pledges into law.

Until Monday, only five countries had actually made their pledges legally binding, according to Climate Watch Data: The United Kingdom and New Zealand, as well as EU members Hungary, Luxembourg and France. Continue reading here (Source: CNN).
US Natural Gas Prices Jump to 29-Month High on Extreme Weather

U.S. natural gas prices jumped last week and early on Monday amid a tight natural gas market and expectations of high demand for electricity in hotter than usual weather in many parts of the United States.

As of 8:19 a.m. EDT on Monday, the U.S. benchmark natural gas price at the Henry Hub was trading at above $3.50 per million British thermal units (MMBtu)—at $3.549, up by 1.52 percent. This was the highest price for the prompt futures in 29 months. 

On Thursday last week, the Energy Information Administration (EIA) reported net injections into storage of 55 billion cubic feet (Bcf) for the week ending June 18, lower than analysts had expected. The median estimate was 62 Bcf injection into storage of natural gas stocks. The lower-than-expected stockpiles of natural gas signaled a tighter market just as the Pacific Northwest is scorching in a heatwave and high temperatures are expected to continue into July in many parts of the U.S.   Continue reading here (Source: OilPrice.com).
US Infrastructure Deal Would Fund Electric Buses, Charging Stations

A bipartisan $1.2 trillion infrastructure framework does not contain new money for electric vehicle rebates but would spend $15 billion to boost EV charging stations and buy electric school and transit buses, the White House said in a fact sheet.

President Joe Biden proposed $174 billion on electric vehicles, including $100 billion on electric vehicle consumer rebates. Democrats in Congress still plan to seek funding for EV rebates in other legislation this year. The funding would "accomplish the president’s goal of building 500,000 EV chargers" and "electrify thousands of school and transit buses across the country," the White House said.

Both General Motors Co and Tesla Inc have hit the manufacturer cap and no longer qualify for consumer $7,500 EV tax credits. Continue reading here (Source: US News).
Global Jet Fuel Demand is Slowly Recovering

America and Europe are leading a slow but steady recovery in global airline seat capacity and travel, which is driving up demand for jet fuel.

Aviation fuel demand will not return “to normal” until at least 2023, analysts have said. But as the summer begins in the northern hemisphere, major destinations are re-opening, and tourists are eager to board a plane to a sunny destination this summer.

Globally, capacity improved by nearly 1 percentage point to reach 62 percent of 2019 levels, according to OAG data used in Bloomberg’s weekly flight tracker. Continue reading here (Source: Oilprice.com).
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