Posted on 07/13/2015 11:03:11 AM PDT by bananaman22
The news from the IEA is not good.
“World oil demand growth appears to have peaked in 1Q15 at 1.8 mb/d and will continue to ease throughout the rest of this year and into next as temporary support fades.”
I don’t have great faith in forecasts but the data shows declining demand growth from late 2010 to the 2nd quarter of this year
The weak global economy is the cause of low demand growth. The current debt crisis Greece and collapsing stock markets in China are the latest alarm signals.
(Excerpt) Read more at oilprice.com ...
ping
This is very good news.
Here in the People’s Republic of CA, gasoline is far from cheap and rocketing higher thanks to the expensive blends we require out here, as well our pigheaded refusal to drill for more oil (we have plenty), refusal to frack, refusal to drill offshore, refusal to build more refineries.
$4 in L.A. is not low. By obamatard standards, sure.
In China you need to get on a waiting list to get a car and you enter a lottery to get license for it. If they uncork that bottleneck demand for oil will soar.
Someone is making a huge killing on oil in California. Gas prices jumped 15-20% for no reason. $4.00 + is typical.
Yes, special blends, only for California, etc. But no refinery explosions, or other supply constraint in the news. Those in the supply chain are making a fortune.
OK, I know, dysfunctional state, we deserve it, glad I don’t live there etc. This is not about that.
“enter a lottery to get license”
I’m pretty convinced that the Chinese (and most other Asians) that got driver’s licenses here in PA did so with a scratch-off lottery ticket.
For Japan and China, maybe. Not the USA.
The USA would be (but for a silly Carter-era export law) a net exporter of oil and its main remaining competitive advantage is cheap natural gas (which will go away without drilling for oil).
China makes it very difficult to export American cars there. But Chinese goods come into US with no problem. The sooner we get Trump, the better off the middle class will be. China is killing us.
Trump is playing you for a fool.
False. That unit is still not back up and running from the Spring.
ExxonMobil importing Asian gasoline for the first time since LA-area refinery explosion
http://www.platts.com/latest-news/shipping/houston/exxonmobil-importing-asian-gasoline-for-the-first-21642766 It is why the West Coast is processing less crude oil than in recent years.
http://eia.gov/dnav/pet/hist/LeafHandler.ashx?n=PET&s=WCRRIP52&f=W
And is importing more Refined Products from other nations and from other areas of the country.
http://eia.gov/dnav/pet/hist/LeafHandler.ashx?n=PET&s=WTXIM_R50-Z00_2&f=W
http://eia.gov/dnav/pet/hist/LeafHandler.ashx?n=PET&s=MPEMXP5P41&f=M
http://eia.gov/dnav/pet/hist/LeafHandler.ashx?n=PET&s=MPEMXP5P31&f=M
It is the California special recipe that makes it more difficult and more expensive to source gasoline from outside sources when conditions are upset. The special blend must be made outside of normal runs.
Your State Legislature is lustily looking at this as an opportunity to slap more tax upon a gallon of gas.
Nobody’s interested in supply and demand explanations.
If prices go up it MUST be because of conspiracy.
Every professional politician for the last several decades have ALREADY played me and the middle class for fools. May it is time to get away from professional politicians.
The nation has an increase in petroleum product exports, but the West Coast has an increase in petroleum product imports this year.
Thanks thackney.
What’s your current take on US oil output from now through 2016? Continued growth or a decline due to rapid declines in rig counts?
I think predicting oil market stuff is the same as throwing dice.
My crystal ball tends to be cloudy most of the time. Way too many factors that impact it, stuff like Greece defaults effect the oil market.
That said, I predicted earlier in the year that US production would go down by the end of summer. That prediction is not looking good, but who knows....
http://www.freerepublic.com/focus/news/3298005/posts?page=27#27
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