gasoline prices

U.S. gasoline and diesel prices have been sliding the past couple of months, but there's still a lot of angst among politicians and the general public about the cost of motor fuels — and who's to say prices at the pump won't soar again, spurring another round of proposed "fixes" to the markets for crude oil and refined products. Among the proposals floated when prices spiked this spring were bans on the export of U.S.-sourced crude, gasoline and diesel, the idea being that suspending exports would increase the supply available to domestic markets and thus bring down prices. If only it were all so simple! In today's RBN blog, we discuss the complicated ins and outs of oil, gasoline and diesel imports and exports, and the many effects of putting the kibosh on shipments to international markets.

There is a fundamental difference in the way value is established in renewable, decarbonized energy markets versus traditional commodities. In traditional energy markets, value is defined by natural laws — physics, chemistry, geography. But in the world of renewables and decarbonization, value is primarily determined by man-made laws — RULES that specify what a particular flavor of energy is worth, what is required to prove that worth, and how that value is ultimately captured by market participants. In effect, a molecule’s (or electron’s) pedigree is as important — if not more important — than its energy content. Whether you are deep into renewables markets or you deal with energy commodities that are impacted by the rules, it is critically important that you understand everything about how these rules work and how they are regulated. In today’s RBN blog we’ll begin an exploration into the inner workings of energy transition market mechanisms.

WTI is selling for north of $120 a barrel, gasoline and diesel are retailing for more than $4.10 and $4.80 a gallon, respectively, and, with Russia continuing its unprovoked war against Ukraine, it’s hard to imagine prices for hydrocarbons easing by much anytime soon. As startling as the recent spikes in crude oil and refined products prices may be, however, it’s worth keeping in mind that, in real-dollar terms, prices for these commodities have been considerably higher in the past, including through much of the 2006-14 period and back in 1979-81. And don’t forget, the car, SUV, or pickup you’re driving today consumes about two-thirds as much fuel per mile, on average, as the vehicle you (or your parents) drove back when Ronald Reagan was running for president and Pink Floyd’s The Wall was the best-selling album. In today’s RBN blog, we put today’s “record-breaking” prices for crude oil and motor fuels in perspective.

It’s been a year since Hurricane Harvey made landfall and devastated the Texas Gulf Coast, and the Atlantic Basin is once again entering peak hurricane season. Among the widespread and prolonged effects of Harvey was the disruption of refinery and refined product pipeline capacity along the Gulf Coast, which then reverberated in downstream markets across Texas, and the U.S. East Coast and Midwest regions. As such, a closer look at Harvey’s timeline provides key insights into the importance of Gulf Coast refineries to the broader U.S. market. Today, we continue our series on Gulf Coast refining and pipeline infrastructure, and how a natural disaster along the coast can impact the rest of the country.

During the first 7 months of 2015 the U.S. experienced record setting refinery crude processing and utilization rates. By the end of July crude inputs topped 17 MMb/d for the first time and nationwide refineries ran at over 96% of operable capacity - reaping the rewards of robust margins. But the party has been marred by a number of unexpected outages – the latest of which brought down a 250 Mb/d unit at BP’s Whiting, IN refinery last weekend – causing a spike in Chicago gasoline prices. Today we ponder why outages may be occurring and the upcoming impact of overdue fall maintenance.

Crude prices closed yesterday at $81.90/Bbl - an 8 month low. Gasoline and heating oil also posted 2012 lows. These falling prices come on the heels of a tough year for East Coast refiners that saw more than 25 percent of refining capacity shut down. Of the remaining capacity, nearly a third - at the Sunoco Philadelphia refinery is due to close in July. Why are East Coast refiners running for the exits? How will the region secure refined product supplies without refineries?  In “Don’t Let The Sun Go Down On Me - East Coast Refining Part I”, we look at why crude economics aren’t working in the region and the impact that refinery closures will have on gasoline supplies.