October 22, 2023 – Business Insider India
Here's why gasoline prices could sink 9% by year-end despite oil's surge
By Filip De Mott
... Refinery issues are another factor. According to Robert Auers of RBN Energy, higher gasoline prices in the second quarter prompted refineries to overproduce, leading to an oversupply.
"Refiners everywhere went into max-gasoline mode, essentially, because that's what the market was telling them to do," he told Insider.
The narrative of a gas shortage even prompted speculators to hold net long positions on futures — now, such positions are at about a two-year low.
"So building inventories, seasonal declines, and then changing speculative positions brought gasoline cracks down," he said, referring to the spread between crude oil and fuel prices.
John Auers, also an analyst at RBN Energy, added that gasoline demand may have become more elastic compared to five to 10 years ago, as remote work allows consumers more leeway in spending on gasoline.
Read the full article here: https://www.businessinsider.in/stock-market/news/heres-why-gasoline-prices-could-sink-9-by-year-end-despite-oils-surge/articleshow/104629929.cms
