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Fuel Week 13 - 2024/03/25 (Puerto Rico)

· 2 min read
Gabriel Smadi

What to expect​

Last week, we saw crude oil in the US (WTI), reach its highest level this year peaking at $83.47 per barrel. Today, we are seeing intraday trading to WTI (CL=F) at around $81.05 per barrel.

We've seen a correction undergo as quickly as a rise, should events that would impact crude oil price, supply or demand we hope to see the barrel lower than $80 this week. We also expect to see a slighter recovery in local fuel prices, albeit at a lower pace (citing the "rockets and feather" behavior of fuel prices).

Highlights​

  • Rise in crude oil, correction underway: A fast rise in crude oil prices has been followed by a fall as well

    "While inventories are shrinking, most traders feel the latest rally in prices has happened a bit too far too fast and a corrective phase is needed. Still, the decline in Russia’s global exports (due to Ukrainian attacks) will be a supply factor as driving season begins, " Dennis Kissler, senior vice president at BOK Financial

  • Gas prices continue rise: In Puerto Rico, the average retail price of a gallon of gasoline was $3.57 ($0.04 higher than the US national average)

    The national gas average on Friday sat at $3.53 per gallon, nearly $0.10 higher than a year ago, according to AAA data.

  • Diesel prices may see relief: One of the largest refineries in the US, which processes around 435,000 barrels per day, comes back online since February

    Buyers of products like diesel, who are the ones who feel the brunt of the refinery spreads rising as evidenced in the 3:2:1 increase, may be getting some relief soon. The Whiting, Indiana, refinery of BP, which has been down or restricted since February due to a power outage, is back online. At 435,000 barrels a day, the refinery is one of the largest in the U.S.

Crude Oil Benchmarks​

Oil Benchmarks

References​