![]() ![]() In the week ending May 5, total motor gasoline inventories fell by 3.2 million barrels and were about 7% below the five-year average for this time of year. The oil market, however, is ignoring these fundamentals as investors and speculators focus on concerns about economic growth and a potential slip in fuel demand in case of a full-blown recession later this year. refiners are optimistic about cracks going forward, and most do not see signs of fuel demand dropping.Īs we head into the driving season and peak annual gasoline demand, the tight gasoline and diesel markets are bullish factors for oil prices. ![]() refining margins.Īlthough global refining margins have halved since February as Russian oil supply remains elevated despite the embargoes, U.S. gasoline and diesel inventories are drawing down and sitting below the five-year average for this time of the year, pointing to resilient fuel demand and supporting both crude oil prices and U.S. ![]()
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