Clipper Oil: Latest Fuel News - Gas Prices Are Expected to Keep Climbing Through August

Latest Fuel News

July 2021

Gas Prices Are Expected to Keep Climbing Through August

AAA said on Tuesday that gas prices were expected to increase another 10 to 20 cents through the end of August.

The average price of a gallon of regular in the United States has risen to $3.13, according to AAA, up from $3.05 a month ago. A year ago, as the pandemic kept people home, a gallon of gas cost just $2.18 on average.

The rise comes amid a breakdown in talks among OPEC and its allies over whether to expand oil production as travel resumes and global demand recovers. The cartel has been unable to reach a deal despite multiple meetings since Thursday. Continue reading here (Source: New York Times).

$3 a Gallon! Who Can Do Something About Gas Prices?

With warnings against overseas travel firmly in place, that summer road trip is looking more attractive. It’s also looking more expensive. Perhaps the U.S. government should look at what China is doing to ease rising oil prices and sell off some of its strategic stockpile.

U.S. gasoline prices at the pump have been firmly above $3 a gallon on average since mid-May and show no sign of coming down any time soon.

That’s putting pressure on American drivers, who are back on the road using almost as much fuel as in the five years before pandemic lockdowns kept everyone home. Continue reading here (Source: Bloomberg).

Oil Falls as Coronavirus, Slower China Imports Hit Demand

Oil prices fell on Monday due to concerns over fuel demand caused by the spread of COVID-19 variants and as changes to import rules in China offset expectations of tight supplies through the rest of the year.

Brent crude futures for September fell 35 cents, or 0.4%, to $73.75 a barrel by 1100 GMT while U.S. Texas Intermediate crude was at $71.63 a barrel, down 44 cents or 0.6%.

Both benchmarks slipped over $1 a barrel in earlier trading. Continue reading here (Source: CNN).

Energy Independence Doesn't Mean What it Used to

For decades, U.S. policymakers failed to understand the full meaning of energy independence. Their definition centered on the need for a self-sufficient supply of cheap oil and gas. That understanding was so dominant it became a matter of national security—eclipsing nearly all other environmental considerations. U.S. President Joe Biden is making a different bet.

Biden realizes two things. First, climate change is its own national security threat; second, real energy independence now means securing the resources and ideas needed for 21st-century energy technologies—among other things, solar panels, rare-earth metals, batteries, and wind turbines.

Yet although the Biden administration has made great strides forward with this acknowledgment, its climate strategy has room to grow. As climate change continues to destabilize at-risk regions worldwide, threatening to draw the United States into more protracted, international conflicts, the administration needs to do more to treat climate change as a matter of national security rather than as just an environmental concern—and to move toward true energy independence in the process. Continue reading here (Source: Foreign Policy).

Summer US Natural Gas Prices are the Highest Since 2014

In June, the U.S. natural gas spot price at the Henry Hub averaged $3.26 per million British thermal units (MMBtu), the highest price during any summer month (April–September) since 2014. Prices in July have increased from June, averaging $3.67/MMBtu through the first two weeks of July. Spot prices for July 14 in every one of the more than 175 pricing hubs tracked by Natural Gas Intelligence exceeded $3.00/MMBtu. These hubs include supply hubs that have traditionally traded at notable discounts to the Henry Hub, such as the Eastern Gas South hub (formerly known as Dominion South), located near production activities in the Appalachia Basin, and the Waha hub, located near production activities in the Permian Basin.

Tighter U.S. natural gas supply and demand balances in recent months contributed to price increases. This summer, more natural gas exports—both those sent by pipeline and those sent as liquefied natural gas—have reduced the supply available for domestic consumption. Warm weather this summer has also increased natural gas consumption for electric power. According to the National Oceanic and Atmospheric Administration (NOAA), June 2021 was the hottest June on record for the United States. Drought conditions in the western United States, in particular, have contributed to increased natural gas-fired generation to offset decreased hydroelectric generation. According to our Hourly Electric Grid Monitor, natural gas-fired generation in the Northwest averaged 240 gigawatthours (GWh) in June 2021, an increase of 50% compared with last year. During the same period, hydroelectric generation fell 20% to 410 GWh. Continue reading here (Source: US EIA).

Oil Steady in Undersupplied Market but Virus Clouds Demand

Oil prices were steady on Monday as the spread of the COVID-19 Delta variant stoked fears over future fuel demand, though crude supply looks set to be tight through the rest of the year.

Brent crude futures for September were up 18 cents at $74.28 a barrel, while U.S. Texas Intermediate crude gained 5 cents to trade at $72.12 per barrel.

Both benchmarks fell by more than $1 a barrel in earlier trading. Continue reading here (Source: CNBC).