Clipper Oil: Latest Fuel News - Oil Prices Climb On OPEC+ Decision And Declining Dollar

Latest Fuel News

February 2023

Oil Prices Climb On OPEC+ Decision And Declining Dollar

After slipping earlier this week on doubts about the Fed’s rate hikes, crude oil prices reversed their losses on Wednesday, following an OPEC+ meeting that resulted in no change to production policy and a weaker U.S. currency.

Doubts about the Fed’s next move ended on Wednesday when the U.S. central bank announced yet another, but smaller, rate hike, at a quarter of a percentage point, largely in line with expectations and hopes that it is nearing the moment when it will end rate hikes altogether.

The Fed itself, however, dismissed such hopes, saying it will continue hiking rates until it gets inflation under control, and this affected the greenback, strengthening oil prices. Continue reading here (Source: OilPrice).

Will Europe's Ban on Russian Diesel Hike Global Fuel Prices?

Europe is taking another big step toward cutting its energy ties with Russia, banning imports of diesel fuel and other products made from crude oil in Russian refineries.

The European Union ban takes effect Feb. 5 following its embargo on coal and most oil from Russia. The 27-nation bloc is trying to sever its last uses of Russian energy and stop feeding the Kremlin’s war chest as the anniversary of the invasion of Ukraine nears.

The newest ban has risks: Diesel prices have already jumped since the war started on Feb. 24, and they could rise again for the fuel that is key to the global economy.

Continue reading here (Source: AP News).

LNG Prices May Have Plunged, But A Rebound Is On The Way

pot LNG prices have plummeted in recent weeks, allowing price-sensitive buyers in South Asia to re-enter the market from which they were priced out last year amid sky-high rates.

Demand in Asia is tepid so far this year, but the wild card in energy markets—China—has yet to show the trajectory of a rebound in gas demand.

Buying activity has been muted in recent weeks around the Lunar New Year holiday in China, and prices for delivery to north Asia slumped to the lowest levels since September 2021. Continue reading here (Source: OilPrice).

US Natural Gas Prices Hit Lowest Point Since 2021

U.S. natural gas prices continued to slide Monday after hitting their lowest point since 2021 last week, following other global benchmarks lower during a warm winter.

Henry Hub fell below $3/MMBtu last week for the first time since May 2021. The March contract closed at $2.677 on Monday. Warm weather, a strong rebound in U.S. gas production to record levels over the last year and an easing energy supply crunch overseas have pushed the U.S. benchmark lower.

Rystad Energy said last week that production growth continues to hinder prices, with January output estimated at an average of 100 Bcf/d. Continue reading here (Source: Natural Gas Intelligence).

Domestic Renewable Diesel Capacity Could More Than Double Through 2025

U.S. production capacity for renewable diesel could more than double from current levels by the end of 2025, based on several announcements for projects that are either under construction or could start development soon.

Two factors behind growing U.S. renewable diesel capacity are rising targets for state and federal renewable fuel programs and biomass-based diesel tax credits. The Inflation Reduction Act of 2022 extended the biomass-based diesel tax credits through 2024. We estimate U.S. renewable diesel production capacity was 170,000 barrels per day (b/d), or 2.6 billion gallons per year (gal/y), at the end of 2022. Although we expect some announced projects will be delayed or canceled, if all projects begin operations as scheduled, U.S. renewable diesel production capacity could reach 384,000 b/d, or 5.9 billion gal/y, by the end of 2025. Continue reading here (Source: American Journal of Transportation).

Global Logistics 2023: Supply Chains Under Pressure

Then logistics experts discuss the challenges and prospects for global supply chains in 2023, it’s clear that a multitude of factors are involved. Many shippers and players in the transport and logistics business are currently under great pressure.

This is due to a number of lingering issues including the pandemic; huge increases in energy prices; large fluctuations in the supply and demand for transport capacities; delays in port trans-shipment; and bottlenecks in hinterland transport. Furthermore, numerous countries are experiencing double-digit inflation.

Russia’s war on Ukraine also has effects on the supply and flows of goods, while disruption of supply chains and the West’s dependence on imports continues to intensify the debate about relations with China. Above all, there’s also the environmental challenge and the question of how to reduce CO2 emissions and deal with the costs for doing so. Continue reading here (Source: Logistics Management).