Sunday, February 5, 2023
  • Contact Us
  • Terms of Use
  • Privacy Policy
  • DMCA
  • CCPA
Oil Market News Today
Advertisement
  • Home
  • Market
    • All
    • Africa
    • Europe
    • Middle East
    • Russia
    • US
    • Venezuela
    Chinese oil giant CNPC eyes BP’s $1.5bn stake in Oman gas field

    Chinese oil giant CNPC eyes BP’s $1.5bn stake in Oman gas field

    Global Ginger Essential Oil Extract Market 2020 with (COVID-19) Impact

    Global Ginger Essential Oil Extract Market 2020 with (COVID-19) Impact

    Global Ginger Essential Oil Extract Market 2020 with (COVID-19) Impact

    Global Ginger Essential Oil Extract Market 2020 with (COVID-19) Impact

    Construction of Dangote oil refinery Africa’s largest nears completion

    Construction of Dangote oil refinery Africa’s largest nears completion

    Oil rises further from 3-week lows, but headwinds loom amid pandemic

    Oil rises further from 3-week lows, but headwinds loom amid pandemic

    TC Energy says new U.S. permit to boost Keystone pipeline oil exports by

    TC Energy says new U.S. permit to boost Keystone pipeline oil exports by

    • US
    • Russia
    • Europe
    • Middle East
    • Africa
    • Venezuela
  • Oil News
  • Oil & Gas
  • Diesel
  • Oil Price
  • Politics
  • Industry
  • Companys
  • Production
  • Natural Gas
No Result
View All Result
  • Home
  • Market
    • All
    • Africa
    • Europe
    • Middle East
    • Russia
    • US
    • Venezuela
    Chinese oil giant CNPC eyes BP’s $1.5bn stake in Oman gas field

    Chinese oil giant CNPC eyes BP’s $1.5bn stake in Oman gas field

    Global Ginger Essential Oil Extract Market 2020 with (COVID-19) Impact

    Global Ginger Essential Oil Extract Market 2020 with (COVID-19) Impact

    Global Ginger Essential Oil Extract Market 2020 with (COVID-19) Impact

    Global Ginger Essential Oil Extract Market 2020 with (COVID-19) Impact

    Construction of Dangote oil refinery Africa’s largest nears completion

    Construction of Dangote oil refinery Africa’s largest nears completion

    Oil rises further from 3-week lows, but headwinds loom amid pandemic

    Oil rises further from 3-week lows, but headwinds loom amid pandemic

    TC Energy says new U.S. permit to boost Keystone pipeline oil exports by

    TC Energy says new U.S. permit to boost Keystone pipeline oil exports by

    • US
    • Russia
    • Europe
    • Middle East
    • Africa
    • Venezuela
  • Oil News
  • Oil & Gas
  • Diesel
  • Oil Price
  • Politics
  • Industry
  • Companys
  • Production
  • Natural Gas
No Result
View All Result
Oil Market News Today
No Result
View All Result
Home Market US

Oil rally and Saudi price spikes could hurt refiners, stifling market

June 10, 2020
in US
Oil rally and Saudi price spikes could hurt refiners, stifling market
Share on FacebookShare on Twitter


Latest Oil MArket NewsPosts

TC Energy says new U.S. permit to boost Keystone pipeline oil exports by

Trump Extracts Campaign Cash in Texas Oil Fields

Oil Slides With Expected U.S. Supply Gain Amplifying Demand Woes

A view of the Marathon Petroleum Corp’s Los Angeles Refinery in Carson, California, April 25, 2020 after the price for crude plunged into negative territory for the first time in history on April 20.

Robyn Beck | AFP | Getty Images

Oil prices pared gains on Monday, despite the weekend announcement by OPEC and its allies, known as OPEC+, that historic production cuts of 9.6 million barrels per day across the group would continue through July as the coronavirus pandemic continues to weigh on demand.  

The move spurred hopeful talk of a recovery for oil prices, which are down about 30% year-to-date after a 56% recovery for international benchmark Brent crude in the month of May. But data from refineries across several regions shows weak margins, or “crack spreads” — the difference between the price of crude that refiners buy versus the price that the market is paying for the refined products.

Higher crude costs without increased returns for the products refineries are selling suggests demand growth isn’t in line with the growth in prices, and could force refineries to buy lower crude volumes, translating into lower crude prices. 

Very poor refining margins and the recent sharp decline in U.S. crude bases now comfort us in our sequentially bearish outlook.

Goldman Sachs Commodities Research Team

“One word of caution is if we look at the rally we’ve seen in crude oil prices, it’s been amazing, but the big uncertainty is if you look at refinery margins, they are very weak across the board across all regions,” Warren Patterson, head of commodities strategy at ING. “And what that suggests is that maybe demand isn’t recovering as quickly as many had anticipated, or at least it’s not keeping up with the move higher that we’ve seen in crude oil prices.” 

The crack spread for refined products in the U.S. was at $9 last week, compared to $21 at the same time last year, Reuters reported, citing Refinitiv Eikon data. Margins for European diesel reached a record low of $2.90 per barrel last week.

“Very poor refining margins and the recent sharp decline in U.S. crude bases now comfort us in our sequentially bearish outlook,” analysts at Goldman Sachs wrote this week. They see Brent pulling back to $35 per barrel in the coming weeks, compared to spot prices at $43.  

Saudi raising selling prices by most in 20 years

And soon to pressure refineries further is Saudi Aramco’s announcement over the weekend that it’s raising official selling prices (OSPs) for all of its customers in July, and for some the highest increases in twenty years. 

Saudi selling prices will spike next month by $5 to $7 per barrel just for Asian buyers, for instance — “again further hitting refining margins,” Patterson said. 

What refineries need is for the demand side to match up with the steady revival of crude prices, expected to gradually improve as economies reopen and lift their lockdowns meant to stem the spread of the coronavirus. 

“Refiners are facing weak cracks (margins) at the moment and the current pick-up in crude prices will only make them worse,” said Edward Bell, commodity…



Read More: Oil rally and Saudi price spikes could hurt refiners, stifling market

Tags: Brent crude marketsbusiness newsCHINACrude oil marketseconomyEnergyhurtICE Brent Crude (Jul'20)marketMarketsoilOil and gas refiningpriceRallyrefinersSaudiSaudi Arabiaspikesstiflingtrade

Related Posts

TC Energy says new U.S. permit to boost Keystone pipeline oil exports by
US

TC Energy says new U.S. permit to boost Keystone pipeline oil exports by

by Oil Market
July 31, 2020
0

The CEO of TC Energy Corp. says the company will begin moving more oil from Western Canada into the...

Read more
Trump Extracts Campaign Cash in Texas Oil Fields
US

Trump Extracts Campaign Cash in Texas Oil Fields

by Oil Market
July 30, 2020
0

WHITE HOUSE - On a visit to Texas less than 100 days before this year’s election, U.S. President Donald...

Read more
Oil Slides With Expected U.S. Supply Gain Amplifying Demand Woes
US

Oil Slides With Expected U.S. Supply Gain Amplifying Demand Woes

by Oil Market
July 29, 2020
0

(Bloomberg) -- Oil declined as investors shifted their focus to domestic supply, with expectations for another build in already...

Read more
Lime Oil Market with Competitive Analysis, New Business Developments and
US

Lime Oil Market with Competitive Analysis, New Business Developments and

by Oil Market
July 28, 2020
0

 Lime Oil Market Overview 2020 – 2028 This has brought along several changes in This report also covers the...

Read more
Castor Oil and its Derivatives Market Size, Share Production & Consumption
US

Castor Oil and its Derivatives Market Size, Share Production & Consumption

by Oil Market
July 27, 2020
0

This Castor Oil and its Derivatives Market report includes worldwide topmost prime manufactures like (Jayant Agro, Arkema, NK Industries,...

Read more
US Gulf Region Still Struggling 10 Years After BP Oil Spill
US

US Gulf Region Still Struggling 10 Years After BP Oil Spill

by Oil Market
July 26, 2020
0

NEW ORLEANS, LOUISIANA - Ten years after the catastrophic BP oil spill in the Gulf of Mexico, Dean Blanchard...

Read more
Next Post
Asia stocks rise as U.S. jobs data bounces unexpectedly; oil prices up

Asia stocks rise as U.S. jobs data bounces unexpectedly; oil prices up

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Today Oil Markets

Oil Downstream Activities Market 2020 Competitive Insights- Royal Dutch

Oil Downstream Activities Market 2020 Competitive Insights- Royal Dutch

3 years ago
Global Oil & Gas Catalyst Market 2019 ? Industry Analysis, Size, Share,

Global Oil & Gas Catalyst Market 2019 ? Industry Analysis, Size, Share,

3 years ago
Singaporean experts arrive to check Assam oil well gas leak – ET

Singaporean experts arrive to check Assam oil well gas leak – ET

3 years ago
Vetiver Oil Market Analysis, Size, Share, Growth, Trends And Forecast

Global Oil and Gas Conductor Pipe Market 2026 Size, Key Companies, Trends,

3 years ago
Libya’s NOC confirms international talks on resuming oil output – ET

Libya’s NOC confirms international talks on resuming oil output – ET

3 years ago
Oil Pressure Control Solenoid Valve Market Study Report (2020-2026),

Global Cedarwood Oil Market by Trends, Dynamic Innovation in Technology and

3 years ago

Oil Market

Chinese oil giant CNPC eyes BP’s $1.5bn stake in Oman gas field

Chinese oil giant CNPC eyes BP’s $1.5bn stake in Oman gas field

July 31, 2020
Global Ginger Essential Oil Extract Market 2020 with (COVID-19) Impact

Global Ginger Essential Oil Extract Market 2020 with (COVID-19) Impact

July 31, 2020
Global Ginger Essential Oil Extract Market 2020 with (COVID-19) Impact

Global Ginger Essential Oil Extract Market 2020 with (COVID-19) Impact

July 31, 2020
Construction of Dangote oil refinery Africa’s largest nears completion

Construction of Dangote oil refinery Africa’s largest nears completion

July 31, 2020

Russia Oil Market

Global Ginger Essential Oil Extract Market 2020 with (COVID-19) Impact

Global Ginger Essential Oil Extract Market 2020 with (COVID-19) Impact

July 31, 2020
Global Ginger Essential Oil Extract Market 2020 with (COVID-19) Impact

Global Ginger Essential Oil Extract Market 2020 with (COVID-19) Impact

July 31, 2020
CORONAVIRUS (COVID-19) IMPACT ON Sandalwood Essential Oil Market OUTLOOK,

CORONAVIRUS (COVID-19) IMPACT ON Sandalwood Essential Oil Market OUTLOOK,

July 29, 2020
Gas, Oil and Dual-fuel Burners Market Size 2020, Global Industry Trends,

Gas, Oil and Dual-fuel Burners Market Size 2020, Global Industry Trends,

July 28, 2020

Europe Oil Market

Oil rises further from 3-week lows, but headwinds loom amid pandemic

Oil rises further from 3-week lows, but headwinds loom amid pandemic

July 31, 2020
Shell posts $18billion loss in second quarter – News for the Oil and Gas

Shell posts $18billion loss in second quarter – News for the Oil and Gas

July 30, 2020
Path to net zero: European oil majors outpace US companies on climate goals

Path to net zero: European oil majors outpace US companies on climate goals

July 29, 2020
Oil price holds near four-month high amid bearish signals – News for the

Oil price holds near four-month high amid bearish signals – News for the

July 28, 2020
  • Contact Us
  • Terms of Use
  • Privacy Policy
  • DMCA
  • CCPA

© 2020 MarketFor Oil.com

No Result
View All Result
  • Home
  • Market
    • US
    • Russia
    • Europe
    • Middle East
    • Africa
    • Venezuela
  • Oil News
  • Oil & Gas
  • Diesel
  • Oil Price
  • Politics
  • Industry
  • Companys
  • Production
  • Natural Gas

© 2020 MarketFor Oil.com