What to expect
Given US crude oil and gas prices are on an upwards trend, we see local fuel prices rising moderately in tandem.
Highlights
US West Texas Intermediate (WTI) has been on an uptrend increasing by more than three dollars per barrel (+$3) compared to the previous week, closing last week at $79.19
According to AAA, US national average gas prices stood around $3.28 per gallon an increase of $0.12 from a week ago
Higher oil prices and recent drawdowns in gasoline stockpiles have also put upward pressure on fuel costs for drivers across the US.
OPEC reports hightened expectations on economic growth in 2024 also increasing oil prices
OPEC said a "positive trend" for economic growth was expected to extend into the first half of 2024 and raised its economic growth forecasts for 2024 and 2025 by 0.1 percentage points.
Interneational Energy Agency (IEA) reports global oil demand growth was losing momentum and trimmed its 2024 growth forecast, weighing on prices.
The agency expects global oil demand growth to decelerate to 1.22 million barrels per day (bpd) in 2024, about half of the growth seen last year, in part due to a sharp slowdown in Chinese consumption. It had previously forecast 2024 demand growth of 1.24 million bpd.
Middle east tensions remain but its impact on oil and fuel prices has mostly been minimal
Crude Oil Benchmarks
Crude oil benchmark (CL=F) for WTI last traded at $79.19 barrel on Feb 16th, 2024.
References
- https://finance.yahoo.com/news/gas-prices-national-average-jumps-to-2-month-high-194220433.html
- https://www.msn.com/en-gb/money/other/opec-sticks-to-oil-demand-view-sees-better-economic-growth/ar-BB1idhWx
- https://www.msn.com/en-us/money/markets/oil-edges-up-as-geopolitical-tensions-offset-weaker-iea-demand-outlook/ar-BB1ioI5Z