Account Info
Log Out
English
Back
Log in to access Online Inquiry
Back to the Top
Diesel issues could get worse due to lack of crude from OPEC+ kingpins
Event Description
Ended
💡Summary: In August, observed global inventories plunged by a massive 76.3 million barrels, or by 2.46 million bpd, per the IEA estimates. Show More
💡Summary:
In August, observed global inventories plunged by a massive 76.3 million barrels, or by 2.46 million bpd, per the IEA estimates.  
According to the Agency, the loss of OPEC+ supply from September onwards will drive a significant supply shortfall.
If Saudi Arabia and Russia then unwind cuts next year, the market would shift to a surplus but oil stocks would remain low leaving.

"From September onwards, the loss of OPEC+ production, will drive a significant supply shortfall through the fourth quarter," the IEA said in its monthly oil report. OPEC+ maintaining current supply cuts through year-end coupled with a positive demand backdrop in Asia could push Brent prices above $100 per barrel before 2024, analysts at Bank of America Global Research said.

Benchmark Brent futures were trading around $93 a barrel by 1006 GMT on Wednesday, while U.S. West Texas Intermediate (WTI) crude was at $89. Asia is leading the global energy demand growth, and China has continued to boost its oil reserves, to keep up with its reliance on imports, Bank of America said in a note dated Sept. 12.
Source: Investing

Diesel futures already are trading near the highest level since January in New York, and the premium that near-term supplies are fetching relative to deliveries later this year is discouraging arbitrageurs from stowing fuel in storage tanks. At the retail level, diesel is commanding 30% more than the five-year average, according to data from auto club AAA.

🎙️Q:
1. Will high oil prices hurt your portfolio?
2. Is diesel fast rust?

View disclosures here.
Views
193K
Posts
84
Join event
Latest
Hot