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Fuel Week 23 - 2024/06/03 (Puerto Rico)

· 2 min read
Gabriel Smadi

What to expect​

Crude oil and derived fuels have been on a declining trends since a peak this year at around February 2024. Expectations have some prices drawing lower in the coming months. Gasoline demand, supply dynamics in the US and abroad by OPEC+ members could continue driving prices downwards. We see more declines coming over the summer months should existing dyanmics persist.

Wholesale Diesel Trend with NY ULSD

Wholesale Gasoline Trend with RB

Highlights​

  • Falling gasoline prices: According to AAA, the national average price for a gallon of gasoline in the US stand at around $3.53 per gallon. Puerto Rico average gasoline price stands at around $3.40 per gallon.

    “Gas prices will likely keep up this slow sag now that we are past the Memorial Day travel weekend and more locations, east of the Rockies, will be selling gas below $3 a gallon,” - AAA spokesperson, Andrew Gross

  • OPEC+ drops $100 per barrel target and will lift production cuts gradually: OPEC+ members met over the weeking and have agreed on gradually dropping their voluntary oil production cuts driving more supply of oil to the market towards the end of the year and further into 2025.

    “While any signal to add back barrels will be seized on by market bears, we think it is important that the taper timeline execution will be data dependent and subject to review at summer’s end,” - Helima Croft, head of global commodity strategy at RBC Capital Markets

Crude Oil Benchmarks​

Oil Benchmarks

References​