RE: prices have dropped substantially this year, not because production has increased but because demand, and more importantly projected future demand, have dropped
1. I am not seeing prices drop substantially this year. In fact, in my tri-state area, I’m seeing PRICE INCREASES even as I write this.
2. You said demand has dropped. How can that be when winter is here? Shouldn’t we expect demand to INCREASE instead?
WTI crude was over $120/bbl as recently as June. Today it's $81/bbl.
You said demand has dropped. How can that be when winter is here? Shouldn’t we expect demand to INCREASE instead?
It's a global market and North American heating oil consumption doesn't make much of a dent, especially compared to the demands of summer driving season.
The consumption of heating oil has been in decline for decades.
What's having a much bigger impact on prices now is the projected global economic slowdown, especially with China still fighting Covid with lockdowns.