The ongoing controversy over the proposed Keystone XL Pipeline linking Alberta’s oil sands to US markets covers a vast amount of factual territory, from refinery configuration to logistics to international crude oil trading to carbon dioxide emissions. But at times, all of these issues take a back seat to the emotional, or symbolic, component of… Keep reading →
The US experienced some of the largest crude oil inventory draws in decades over the past three weeks, which begs the question why is this occurring at a time when domestic production is soaring? Here’s a hint, summer driving season and refining fundamentals might be playing a role. [Sober Look] What do you do when… Keep reading →
Crude oil is once again showing strength. So what’s behind this sudden demand for the black gold? First of all, we have seen some positive economic numbers come out of Washington. Second, seasonal factors are keeping many oil products in high demand, especially gasoline. If fact, gas demand has increased to more than 9 million… Keep reading →
As West Texas Intermediate crude prices surge on US fundamentals, geopolitical considerations and infrastructure bottleneck alleviation, the Brent-WTI spread is now razor thin. The US benchmark’s discount to Brent fell to less than $2 per barrel for the first time since 2010 – WTI’s price climbed to 15-month highs – as crude for August delivery… Keep reading →
Crude has had an incredible run over the past two weeks. But I’d think twice before hopping aboard this speeding train. At today’s highs, August crude oil futures was up more than 12 percent in two and a half weeks. It would be easy to attribute this rally to tensions in Egypt, but that would… Keep reading →
Heading into the Fourth of July holiday weekend, the trade group representing the US refining industry had some choice words about the impact of US regulations on gasoline prices. “Our industry and the economy are taking a hit with RFS [renewable fuel standards], air pollution regulations and Cafe [corporate average fuel efficiency] standards, which all… Keep reading →
The big story in crude oil markets over the past few years was the historic price divergence between West Texas Intermediate (WTI) and Brent, the world’s 2 most-widely traded crude oil contracts. However, after blowing out to an unprecedented $27 per barrel Brent premium in summer 2011, the story is now about Brent-WTI contraction and… Keep reading →
By Scott Cohn What a difference a few years make. When we launched America’s Top States for Business in 2007—before the housing market implosion and the financial crisis—our Top States were attracting not only businesses but people: families and home buyers. Four of our Top Five that year were Southern states: Virginia followed by Texas, Utah,… Keep reading →
Gasoline prices expected to increase more than diesel prices next week? Then crank up gasoline production! It may sound simple, but sophisticated software, communications and refining equipment all work in harmony to maximize profits on the fly in the highly-competitive US refining industry. Refinery control room operators in New Jersey work closely with commercial traders… Keep reading →
Where are Oil Prices Headed on Syria News?
By Jared AndersonGlobal benchmark oil prices crept up to two-year highs over the past week or so as tensions in the Middle East and North Africa flare. US intervention in Syria currently awaits a congressional vote, so what will that decision likely mean for near-term price trajectory? It appears the geopolitical risk premium is mostly factored in… Keep reading →