Crude closed at a five-month high after U.S. government data showed the biggest decline in gasoline stockpiles since 2017, offsetting an increase in crude inventories.
The price of Brent crude has dropped below $50, the lowest in almost four months, as surging US stockpiles dim optimism that OPEC and its partners output cut will rebalance the market.
A gasoline line may be shut for at least a week after one worker was killed and five others were injured after an explosion and a fire in Alabama.
Gasoline prices are set to jump across the eastern U.S. after a spill from the country’s largest fuel pipeline choked off supplies.
Kuwait’s government approved an increase in prices of gasoline sold locally by as much as 83 percent, becoming the latest oil-rich Arab nation to cut subsidies as lower crude prices squeeze finances.
As a flotilla of gasoline tankers steams across the Atlantic Ocean to the US, European motorists are paying more for their gasoline because Americans are driving more than ever. Surging demand and rising prices for gasoline in the US are luring about double the number of tankers compared with 2014, boosting shipping rates to the highest seasonal levels in seven years. With so much being exported, fuel prices in Europe have increased almost four times faster than crude since February to the equivalent of more than $6 a gallon. The flotilla underscores the rising thirst for fuel after oil prices fell by half since June 2014 and the U.S. economy improved. Americans are driving record miles, raising consumption of gasoline and profit margins for refiners.
Refiners are poised to make gasoline at a record pace this year, keeping the biggest US crude glut in more than 80 years from overflowing storage. They’re enjoying the best margins in two years as they finish seasonal maintenance of their plants before the summer driving season. They’ll increase output to meet consumer demand and they’ve added more than 100,000 barrels a day of capacity since last summer, when they processed the most oil on record. Booming crude production expanded inventories this year by 86 million barrels to 471 million, the highest level since 1930.
During the holidays, a friend was driving home and said she spotted a fracking well soon after she crossed into Texas. She wasn’t happy about it. Another friend posted on Facebook a picture of gas prices below $2 a gallon — something that hasn’t happened in more than five years — and commented that the low price made him feel as if “he was stealing something.” In America, the world’s largest energy-consuming nation, the biggest fractures occur not in deep underground shale formations but in the way we separate our perceptions of energy from reality.
China’s net exports of gasoline last month rose to the highest rate in more than four years as refiners in the world’s second-largest oil consumer boosted production to a record. Overseas sales exceeded imports by 674,360 metric tons in October, according to figures e-mailed by the General Administration of Customs today. That’s highest since April 2010 and more than double from September, data compiled by Bloomberg show. It’s equivalent to 184,000 barrels a day. Gasoline is used in cars and planes, said the customs agency in Beijing.