Good Sam Club Open Roads Forum: World ‘awash in diesel’ and refiners are paying the price
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 > World ‘awash in diesel’ and refiners are paying the price

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Trackrig

Spent the summer in Conconuly, Wa, MH now in Vanco

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Posted: 06/11/20 11:43am Link  |  Print  |  Notify Moderator

(Bloomberg; June 8) - In all the hullabaloo of OPEC+ prolonging the deepest production cuts in history, it’s easy to overlook ominous signals for prices emanating from the diesel market. The world’s largest oil producers agreed June 6 to extend their collective output curbs, keeping 10% of supply off the market another month. While that tightens the global crude market, potentially driving prices higher, it does little to address grim margins that refiners earn from diesel, one of the most important petroleum products.

“The world’s awash with diesel,” said Alan Gelder, vice president for refining, chemicals and oil markets at consultants Wood Mackenzie. “There’s just loads of it everywhere.” Away from Europe, where diesel often powers cars, the fuel is also widely consumed by industry to move goods, as well as in construction and agriculture. Less economic activity, less demand for diesel. The bigger problem, though, is too much supply.

Refineries — particularly in Europe and the U.S. — are trying to make as little jet fuel as possible because demand from the aviation industry still remains far below where it was before the pandemic struck. But that means producing more diesel from the barrels. Similarly, refineries cannot meet a recovery in gasoline consumption without boosting their overall processing rates — and that too brings more diesel. U.S. diesel stockpiles have grown for nine straight weeks to sit at the highest since 2010 and refinery margins on producing the fuel in the U.S. are hovering near a 10-year low.

Bill


Nodwell RN110 out moose hunting. 4-53 Detroit, Clark 5 spd, 40" wide tracks, 10:00x20 tires, 16,000# capacity, 22,000# weight. You know the mud is getting deep when it's coming in the doors.


gbopp

The Keystone State

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Posted: 06/11/20 12:17pm Link  |  Print  |  Notify Moderator

Don't worry, winter is on the way. Fuel oil prices will go up. [emoticon]

Chris Bryant

Arden, North Carolina

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Posted: 06/11/20 02:13pm Link  |  Print  |  Notify Moderator

Air is getting cleaner!


-- Chris Bryant

ferndaleflyer

everywhere

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Posted: 06/11/20 02:45pm Link  |  Print  |  Notify Moderator

if there is so much why is the price going up? Diesel is up here but the real killer is how can gas go up $.80 a gallon here in a month? And every station is the exact same price??????

midnightsadie

ohio

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Posted: 06/11/20 02:55pm Link  |  Print  |  Notify Moderator

price fixing , and we pay.

pianotuna

Regina, SK, Canada

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Posted: 06/11/20 04:35pm Link  |  Print  |  Notify Moderator

Chris Bryant wrote:

Air is getting cleaner!
Hurrah for that. I hope everyone turns in their gas or diesel guzzlers for electric
transport. (yes, I know that is a bit early--but better for the world!)


Regards, Don
My ride is a 28 foot Class C, 256 watts solar, 556 amp hours of AGM in two battery banks 12 volt batteries, 3000 watt Magnum hybrid inverter, Sola Basic Autoformer, Microair Easy Start.

SDcampowneroperator

South Dakota

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Posted: 06/11/20 08:41pm Link  |  Print  |  Notify Moderator

Refining is not a set value, cracking can and does break those molecules into any fuel needed. Heavy oils or bitumen from the CDN oil fields and tar sands are transformed into any synthetic light sweet crude the end refiner needs by cracking with heat, water and natural gas.
When those heavy oils are cracked, it adds cost to the product, thats why you see Brent and west Tx int. sell at different prices, and CDN syn crude. Prices on the market you see are at point of sale, FOB , not at delivery. The cost to market transportation via ship, pipe, rail, truck or through protesters ( who got to the protest in their vehicle)

Oil is a world market. Thankfully due to American ingenuity and technology No. America is no longer dependent on offshore countries. The USA is a net exporter.

dalej

texas

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Posted: 06/12/20 04:28am Link  |  Print  |  Notify Moderator

Saw diesel priced less than regular in Fayetville Arkansas yesterday.


2005 Chevy HD2500, ext cab, 4x4, 8.1, allison,lwb,srw, 265 75 16's, timbrens

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Posted: 06/12/20 07:30am Link  |  Print  |  Notify Moderator

Oil/Fuel comments go here.

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