• 4 minutes Why Trump will win the wall fight
  • 9 minutes Climate Change: A Summer of Storms and Smog Is Coming
  • 12 minutes Maduro Asks OPEC For Help Against U.S. Sanctions
  • 16 minutes Washington Eyes Crackdown On OPEC
  • 17 hours is climate change a hoax? $2 Trillion/year worth of programs intended to be handed out by politicians and bureaucrats?
  • 6 hours Ayn Rand Was Right
  • 4 hours Tension On The Edge: Pakistan Urges U.N. To Intervene Over Kashmir Tension With India
  • 6 hours Oil imports by countries
  • 8 hours Sanctions or Support: Despite Sanctions, Iran's Oil Exports Rise In Early 2019
  • 5 hours Solar and Wind Will Not "Save" the Climate
  • 4 hours Indian Oil Signs First Annual Deal For U.S. OilIndian Oil Signs First Annual Deal For U.S. Oil
  • 3 hours AI Will Eliminate Call Center Jobs
  • 3 hours NZ Oil, Gas Ban Could Cost $30 Bln
  • 20 hours Regular Gas dropped to $2.21 per gallon today

High Diesel Demand Could Cause An Oil Price Spike

Diesel

Friday September 29, 2016

In the latest edition of the Numbers Report, we’ll take a look at some of the most interesting figures put out this week in the energy sector. Each week we’ll dig into some data and provide a bit of explanation on what drives the numbers.

Let’s take a look.

1. More light oil, less heavy oil

(Click to enlarge)

- The uptick in oil production since March 2017 has come largely from lighter forms of oil, more than offsetting declines in medium and heavier oils, according to the EIA.
- This is the result of a rise in shale production at a time when OPEC is cutting back. But outages and declines in Mexico, Canada and Venezuela have also taken heavier barrels off of the market, while production increases in Libya and Nigeria have added new lighter barrels to global supply.
- Lighter oil typically trades at a premium to heavier oil, but the increase in supply of lighter oil and the cutbacks in heavier oil have led to a narrowing of the price spreads between them.
- The premium for Louisiana Light Sweet (LLS) over heavy Maya has declined significantly from $9 per barrel in March to just $5 per barrel in August. Similarly, WTI’s $13 premium to Western Canadian Select has narrowed to $10 per barrel over the same timeframe.

2. EVs beat oil-fueled cars on maintenance

(Click to enlarge)

- Electric cars continue to gain ground on incumbent technologies (gasoline…

To read the full article

Please sign up and become a premium OilPrice.com member to gain access to read the full article.

RegisterLogin



Oilprice - The No. 1 Source for Oil & Energy News