Clipper Oil: Latest Fuel News - U.S. Drivers In for a Gasoline Price Shock at the Pump

Latest Fuel News

May 2021

U.S. Driver In for a Gasoline Price Shock at the Pump

It’s one of the busiest travel days of the year in the United States. As drivers ready to hit the road for their Memorial Day weekend road trips, they might want to bring along a fatted wallet—because gasoline prices at the pump are soaring, according to new information from AAA.

The United States will see 60% more travelers this year than last year, the AAA newsroom reported, with more than 37 million people expected to travel 50 miles or more. And while that may seem like a large number, it is still 6 million fewer than pre-pandemic traveler figures.

The anticipated demand for fuel is likely to increase the price of retail gasoline, exacerbated by the still-normalizing Colonial Pipeline outage that ran thousands of gas stations dry in the wake of a ransomware attack. Continue reading here (Source: Oilprice.com).

Average U.S. Retail Gasoline Price Exceeds $3.00 for the First Time Since Late 2014

Disruptions to Colonial Pipeline operations prompted an increase in the average U.S. retail price for regular grade gasoline (retail gasoline price) to $3.03 per gallon (gal) on May 17, the first time retail gasoline prices averaged more than $3.00/gal since October 27, 2014. The average retail gasoline price in the Lower Atlantic (PADD 1C) increased 10 cents/gal from the previous week to $2.88/gal.

The increased retail price for gasoline in the Lower Atlantic resulted from outages at many gas stations in the region, which occurred because of the pipeline disruption that hindered supply and increased purchases of gasoline in response to the station outages. On May 17, New England (PADD 1A) and Central Atlantic (PADD 1B) retail gasoline prices averaged $2.93/gal and $3.04/gal, respectively, up 6 cents/gal and 5 cents/gal from the previous week. The Midwest (PADD 2) and Gulf Coast (PADD 3) retail gasoline prices averaged $2.91/gal and $2.78/gal, respectively, up 5 cents/gal and 11 cents/gal from the previous week. Continue reading here (Source: EIA).

A Rare Moment of Stability for Oil Prices

Oil prices have generally been trending higher over the past few months as the demand outlook for the commodity improved amid mass vaccination efforts. This week, however, benchmarks have experienced a rare moment of stability.

This stability does not reflect stability in the market environment. On the contrary, it is the result of bullish and bearish events—equally strong—that are basically canceling each other for the time being.

On the bearish side, we have the news about the U.S.-Iran talks in Vienna, with most reports on these suggesting a deal will be closed soon. Yet in evidence of just how fragile any stability in oil markets is, yesterday's prices inched up on reports that the talks had hit a snag. Continue reading here (Source: Oilprice.com).

Lubricant Oil Prices Surge as Supply Takes a Dive

In recent years, a growing oversupply has allowed companies to secure competitive base oil prices and encouraged many countries to increase their reliance on base oil imports. A substantial oversupply in 2019 emphasised the benefits of a widening adoption of imports. However, dependence on base oil imports is not without risk.

The propagation of Covid-19 throughout 2020 brought with it a prevailing global theme of tightening base oil supply. The supply tension contrasted sharply with the oversupply of a year earlier and underscored the risks and costs associated with this strategy, says Jane Liu, associate editor, base oils, Asia-Pacific & Middle East, Argus Media. Liu provided an update on the disruption of Covid-19 on global base oil supply during a virtual Base Oils Forum hosted by Argus Media on 9 February 2021. Continue reading here (Source: Fuels and Lubes Magazine).

IEA: World Has Pathway to Net-Zero Emissions in 2050

The world has a viable pathway to building a global energy sector with net-zero emissions in 2050, but it is narrow and requires an unprecedented transformation of how energy is produced, transported and used globally, the International Energy Agency said in a landmark special report released today.

Climate pledges by governments to date – even if fully achieved – would fall well short of what is required to bring global energy-related carbon dioxide (CO2) emissions to net zero by 2050 and give the world an even chance of limiting the global temperature rise to 1.5 °C, according to the new report, Net Zero by 2050: a Roadmap for the Global Energy Sector. Continue reading here (Source: Fuel Oil News).

California Launches Rulemaking to Ban Fracking in 2024

California initiated on Friday the pre-rulemaking stage of proposed legislation that would end fracking in the state in 2024.

The Department of Conservation, Geologic Energy Management Division released pre-rulemaking draft regulations for the purpose of receiving ?public input on the development of a rule that ends permitting for well stimulation treatments in? 2024. The comment period ends on July 4, 2021, and the division will review the comments and consider them in developing proposed regulations for formal rulemaking.

The department’s launch of the pre-rulemaking process is a follow-up to last month’s move from California Governor Gavin Newsom, who directed CalGEM to initiate regulatory action to end the issuance of new fracking permits by January 2024. Continue reading here (Source: Oilprice.com).