Gasoline Prices, Oil Prices Tick Up

https://canadafreepress.com/article/gasoline-prices-oil-prices-tick-up


The Biden administration is getting what it wants—higher oil prices and higher gasoline prices that will result in Americans being forced to transition to electric vehicles and get to a net zero economy by 2050

Gasoline Prices, Oil Prices Tick Up

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By Institute for Energy Research —— Bio and Archives--March 14, 2021



Supply and demand have been mostly responsible for the increases in oil and gas prices since the heart of the pandemic. Global demand exceeds production by 2.8 million barrels a day. Demand has recovered in China and India and is on the upward spiral in the United States and Europe. Oil stockpiles that rose during the pandemic have decreased due to output cuts by OPEC+ (OPEC and its partners) and lower production in the United States during the pandemic. U.S. oil production was further curtailed by more than 10 percent, 1 million barrels per day, due to the freezing weather hitting oil producing states, particularly Texas. Adding to that, OPEC+ recently agreed to continue its production cuts through the end of April with minor exceptions. A March 7 attack on a Saudi oil port further increased Brent oil prices to over $70 a barrel. West Texas Intermediate oil prices had hit a low of minus $37.63 a barrel shortly last April before settling around $40 a barrel, but are now in the mid-$60 a barrel range.


U.S. Petroleum Demand

U.S. petroleum demand, as measured by total petroleum products supplied, was 19.4 million barrels per day in January 2021, according to the latest monthly statistical report by the Energy Information Administration (EIA), a 4 percent increase from December and a decrease of only 2.3 percent compared with January 2020—a notable recovery given the depths of the 2020 COVID-19 recession that began after that.

Consumer gasoline demand was 8.5 million barrels per day in January—basically steady from December. The majority of recent driving activity is due to necessity, as opposed to discretionary travel which has been reduced during COVID-19. The 8.5 million barrels per day in January 2021 was a decrease of 11.6 percent (1.1 million barrels per day) versus January 2020, but 34 percent higher than April 2020.

OPEC+ Decision

U.S. oil prices posted their highest finish since 2019 after the Organization of the Petroleum Exporting Countries and its allies said they will rollover current production cuts to the end of April. Russia and Kazakhstan were the only exceptions and were allowed to increase production by 130,000 and 20,000 barrels per day, respectively, due to “continued seasonal consumption patterns”. Saudi Arabia also extended its voluntary output cut of one million barrels per day, which was due to expire at the end of March, through the month of April. OPEC+ appears to be responding to the uncertainty around the demand outlook by taking a more cautious approach. Further, OPEC+ does not believe that U.S. oil production will be able to respond to the higher price environment any time soon. Forecasters are looking at $75 or $80 a barrel oil in the 2nd and 3rd quarters of this year.



Attack on Saudi Oil Port

Yemen’s Iran-aligned Houthi rebels said they attacked a major Saudi Arabian oil port on the Persian Gulf (Ras Tanura) with drones and missiles on March 7. Despite Saudi authorities indicating the strike caused no casualties or damage, oil prices increased after the market opened Sunday evening in New York following the attack. Brent crude added more than 2.5 percent, rising above $71 a barrel. Prices surged to their highest level since May 2019, due to rising demand as the global economy reopens from shutdowns caused by the coronavirus and due to supply curtailments in many producing countries.
   
Ras Tanura is the site of Saudi Aramco’s oldest and largest oil refinery and the world’s biggest offshore oil loading facility. The 550,000 barrel-a-day refinery supplies over a quarter of the kingdom’s fuel supply, and its port is capable of moving 6 million barrels per day. It is critical to world oil supplies.
   
The Houthis stepped up aerial attacks on Saudi Arabia following President Biden’s inauguration in January. President Biden pledged to end the six-year-old civil war in Yemen and recalibrate Washington’s relationship with Riyadh.

Saudi Arabia responded by dropping bombs on Yemen’s rebel-held capital San’a. The coalition blamed the Biden administration for the attacks by Iran-backed Houthi rebels after a decision to remove them from U.S. terror lists. The price of Brent crude was down to $68.76 a barrel, after hitting a high of $71.38 a barrel on Sunday. It was the first time the global benchmark has traded above $70 since January 2020.


Gasoline Prices

Gasoline prices have been increasing at the pump for the past few weeks, reaching a national average of $2.77 a gallon as of Monday, March 8, which is 39 cents higher than the same time in 2020, according to AAA. Some forecasters are predicting a national average price of $3 a gallon as early as April. The more states reopen and the more people get vaccinated, the more demand for gasoline will likely increase. If higher demand levels occur during the summer driving season, even higher gasoline prices could result.

Conclusion

The Biden administration is getting what it wants—higher oil prices and higher gasoline prices that will result in Americans being forced to transition to electric vehicles and get to a net zero economy by 2050. It does not appear to matter to the Biden administration that Americans will suffer and that low income families will be affected the most. The Biden administration’s domestic and foreign policy will result in higher oil and gasoline prices, which was apparent from day one when President Biden signed executive orders to cancel the Keystone XL pipeline and to review oil and gas drilling on federal lands by placing a moratorium on leasing there.The post Gasoline Prices, Oil Prices Tick Up appeared first on IER.

no oil was given away with cash to anybody. article doesnt know what its talking about.

jirqoadai wrote:no oil was given away with cash to anybody. article doesnt know what its talking about.

Wherever in that article did it claim that "oil was given away with cash to anybody?"

It didn't, so shake it off.

I'm furious with what this administration has done to our country, and, for somebody who previously stated that it wants a war, THIS started one, and you don't even acknowledge that.

   
The Houthis stepped up aerial attacks on Saudi Arabia following President Biden’s inauguration in January.

Marvelous.  

click on the provided link. i quote" west texas intermediate oil prices had hit a low of MINUS $37.63 a barrel shortly last april before settling around $40 a barrel. " you have either misplaced you bi-focals or your thinking cap. pick one.

the main reason oil is shooting up is the greendeal. hedging contracts have increased the price from $45 arizing to $68. now theyre down to $53. due to vlad flooding the market

jirqoadai wrote:click on  the provided link. i quote" west texas intermediate oil prices had hit a low of MINUS $37.63 a barrel shortly last april before settling around $40 a barrel. " you have either misplaced you bi-focals or your thinking cap. pick one.

http://www.besttextmarketing.org/2020/04/oil-prices-crash-and-hit-negative-for-the-first-time-in-history/



US crude oil prices crash and turned negative on Monday, 20th April, 2020 for the first time in history, ending the long day at a stunning minus $37.63 a barrel. Traders sold heavily because of rapidly filling storage facility at the key Cushing, Oklahoma, delivery point. The international benchmark ‘Brent crude’, also slumped. However, this contract was nowhere as weak because more storage is still available worldwide. The May U.S. WTI contract fell $55.9, which is equivalent to 306 percent, to settle at a discount of $37.63 a barrel after touching an all-time low of minus $40.32 a barrel. Brent was then down $2.51, or 9 percent to settle at $25.57 a barrel.

According to Phil Flynn, an analyst at Price Futures Group, Chicago, said that The storage is too full for speculators to buy this contract, and the refiners are running at low levels because we haven’t lifted stay-at-home orders in most states. Chances for things to change in the next 24 hours are slim. The physical demand for Crude oil depleted worldwide, creating a huge supply glut as billions of people are staying at home to slow down the spread of the novel coronavirus.

Refiners have also reduced crude oil processing than normal. As a result, hundreds of millions of barrels are currently in storage facilities worldwide. Traders have hired many vessels just to anchor them and fill them with excess oil. According to data, a record 160 million barrels is just sitting in tankers around the world. With US oil prices currently trading in negative territory, sellers have no choice but to pay buyers for the first time ever to take oil futures.




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So oil was indeed traded and delivered at the negative figure.

so no. nobody gave anybody money to take away their oil. it did drop to $5.05 for Upper Texas Coastal oil, but that was the extent of it. its total hogwash thinking " please mister trucker!!!! i will give you $36 dollars for every barrel of oil you haul away. you can sell it. i dont want anything in return "

want to know why its called hogwash? it never happened. wash a hog without it cooling off through its nose and itll drop dead of shock. im very sorry to learn youve swallowed the MSM hogwash, bucket, brush and water.

The "negative" prices seen a year ago, was for futures.

Basically it involved future-delivery contracts, in a world turned upside down by the WEF-CCP-Wuhan virus.

Nobody was paid to take oil. Some people were paid to take the risk on future delivery contracts, at a time when consumption had abruptly slowed and storage was at a premium.

Those contracts have now been fulfilled, and probably some of those who got paid to take them, did quite well. Betcha many of them were Chinese.

storage was at a premium...........EVERY SINGLE WELL has been mandated to have at the very bones bottom a 213 barrel tank. while most have that PLUS either a 1,000 barrel or a 5,000 barrel tank. storage is only what happens after the liquid is purchased off the wellhead. THERES IN FACT huge amounts of storage before it even gets to a truck.