West Texas..where art though?
Would like to see an update to the global picture on supply, and exports.
AirlinePilot wrote:West Texas..where art though?
Would like to see an update to the global picture on supply, and exports.
Revi wrote:There is no glut in distillates, such as diesel and heating oil. Hence the price of gasoline keeps going down while the price of diesel and heating oil is holding.
For diesel, as the hot summer months come to a close, the important crop harvesting period is upcoming for the agriculture sector. Farmers are an important demand driver for diesel because of the seasonality of their demand increase. Truckers are a large portion of diesel demand but provide more consistent demand month to month. Because the agriculture business is so dependent on the weather for their planting and harvesting, diesel prices can be influenced by bad weather conditions. Heavy rains and freezing temperatures can impact farming operations and diesel demand timing.
Gasoline prices are expected to fall further as winter gasoline blends will replace more expensive summer gasoline across the nation. With another Labor Day and summer vacation season coming to an end, the demand for gasoline will drop off just as diesel demand will pick up for harvest season. Because of the inverse relationship between gasoline and diesel demand peaks, it is typical for diesel to be the cheapest compared to gasoline in the summer months.
As gasoline demand falls off in the winter and harvest season comes to an end, diesel prices generally are at their highest premiums versus gasoline in the November-December time frame. As truck racks begin the switch over to summer gasoline in the spring, diesel prices recover with respect to gasoline prices.
As the trend looks valid again for this year, expect diesel prices to start their upward tick compared to gasoline. The last few years have seen the spread go from 60 cpg to as high as 90 cpg that we saw last year. As GasBuddy put out its end of year projections for gasoline prices in the U.S. to be sub-$2/gal, expect diesel prices to stay below $3/gal as demand picks up.
Read more at https://blog.gasbuddy.com/posts/Diesel- ... 7M52mrG.99
The persistent price premium for diesel compared with gasoline from August 2009 until last week reflected a combination of factors including strong global demand for diesel, federal fuel taxes for diesel that are 6 cents/gal higher than those for gasoline, and the higher production cost of ultra-low sulfur diesel (ULSD) that was phased in between 2006 and 2010.
Gasoline and diesel have opposite seasonal demand patterns: gasoline demand tends to peak in the summer driving months, while diesel demand generally peaks in the winter heating months. Since January, gasoline demand growth has been unusually strong both in the United States and abroad. Furthermore, although retail gasoline prices in most parts of the country have in recent weeks followed decreasing crude oil prices, elevated retail gasoline prices in California, as a result of ongoing supply disruptions, have raised the U.S. weekly average gasoline retail price.
Tight diesel markets over the past six years have reflected growing diesel demand from developing economies and the switchover to ultra-low sulfur diesel (ULSD) for home heating oil in northeastern states, where more than 80% of U.S. use of oil for space heating occurs. Over the same period, gasoline demand has generally been weak, reflecting increasing vehicle fuel economy and changing consumer driving patterns.
Gasoline demand in the United States began to rise considerably in the latter part of 2014 and through the first half of 2015 as U.S. retail gasoline prices reached some of their lowest levels in years, reflecting the fall in North Sea Brent crude oil prices from an average of $112 per barrel (b) in June 2014 to $48/b in January 2015. Gasoline prices generally followed Brent crude oil prices, falling from $3.69/gal in June 2014 to $2.12/gal in January 2015. Based on the latest data from the Federal Highway Administration, Americans drove a record 987.8 billion miles during the first four months of 2015, topping the previous record of 965.6 billion miles set in the first four months of 2007. Global gasoline demand also increased strongly in the first half of 2015.
Revi wrote:The fact that more and more oil is being used at the source is interesting. I know a lot of people who are living in the Middle East and they are doing it because they are living a pretty good life over there. A lot of people who used to live in the rest of the world end up there. Working people, managers, teachers, etc. We are attracted to the oil. Just like a lot of people went to Texas about 40 years ago. People will go to where the economy is better. I knew people who lived in Dubai, Kuwait and Riyadh. There are people from all over there. There weren't many people there to begin with, so they imported a lot of people to run things.
http://peakoil.com/consumption/middle-e ... -years-ago
ROCKMAN wrote:Care - 40 years ago??? LOL.
ROCKMAN wrote:Care - I think I misinterpreted you: what did you do in 2002 and where did you go?
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