Crude Posts Moderate Gains On Comments From Saudi Energy Minister
Crude prices jumped Tuesday on short covering after Saudi Arabian Energy Minister Prices Abdulaziz bin Salman said short sellers in the crude market "will be ouching like they did back in April," when OPEC+ unexpectedly cut crude production.
Crude has support on reduced Canadian crude output as wildfires in Alberta have halted at least 240,000 bpd and possibly 300,000 bpd of crude production from several Canadian crude producers.
The outlook for stronger U.S. fuel demand is bullish for crude prices. AAA is forecasting that as many as 42.3 million Americans will travel 50 miles or more from home this Memorial Day weekend, up +7% y/y and thehighest for a Memorial Day weekend since 2005.
Weakness in manufacturing activity in the U.S. and Europe is bearish for energy demand and crude prices. On the bearish side, India's Apr crude imports fell -8.3% y/y to 19.8 MMT as processors curbed operating rates amid a drop in petroleum-product exports. In a bearish factor, Vortexa reported Monday that the amount of crude stored on tankers that have been stationary for at least a week rose +1.3% w/w to 91.15 million bbl in the week ended May 19.
GOTTA LOVE THE 5 YEAR COMPARISON SEASONAL GASOLINE CHART
Careful, you keep thinking like that and Biden will put you in charge of his campaign.
Brandon the big guy is planning to push gasoline prices below $1 to put tesla out of business.
"Careful, you keep thinking like that and Biden will put you in charge of his campaign."
JIM ~ THAT WOULD BE A VERY FUNNNNNNNN JOB. LOLOLOL
"Brandon the big guy is planning to push gasoline prices below $1 to put tesla out of business."
LOL I NEVER GAVE THAT A THOUGHT!! THINK IT'LL WORK? HE'S GOT A GREAT HEAD START GOIN', TODAY. LOL
THE "BIG GUY" IS REALLY IN THE NEWS THIS MORNING ~ EVEN CLEAR BACK TO THE B.O. DAYS ~ INCLUDING B.O., HIMSELF. THEY'D BUILT A "NICE" LITTLE "FOOD" PYRAMID TO ROOT OUT THE "BAD APPLES" .
THURSDAY MAY 25, 2023
| Ohio | USA | Trend | |
|---|---|---|---|
| Today | 3.519 | 3.554 |  |
| Yesterday | 3.519 | 3.557 | |
| One Week Ago | 3.527 | 3.524 | |
| One Month Ago | 3.558 | 3.636 | |
| One Year Ago | 4.444 | 4.599 | |
| * Average Regular Gas Prices - Updated: 4:55 PM | |||
Saudi Arabia Is Slashing Oil Supply. It Could Mean Higher Gas Prices For US Drivers
The Saudi cut of 1 million barrels per day, to start in July, comes as the other OPEC+ producers agreed in a meeting in Vienna to extend earlier production cuts through next year.
Calling the reduction a “lollipop,” Saudi Energy Minister Abdulaziz bin Salman said at a news conference that “we wanted to ice the cake.” He said the cut could be extended and that the group “will do whatever is necessary to bring stability to this market.”
The new cut would likely push up oil prices in the short term, but the impact after that would depend on whether Saudi Arabia decides to extend it, said Jorge Leon, senior vice president of oil markets research at Rystad Energy.
The move provides “a price floor because the Saudis can play with the voluntary cut as much as they like,” he said.