Summary​

Crude oil benchmarks are on the upside again today, with US WTI currently marking $78 per barrel. No major changes observerved with local wholesale fuel prices.

As seen by wholesale fuel prices collected by DACO on June 12th, wholesale diesel prices mark around $3.09 per gallon on average. We see a reported low of $2.99 per gallon (Bita's Fuel Corp) and a high of $3.21 per gallon (Texaco).

Wholesale gasoline prices on average marked around $3.18 per gallon, with a low of $3.10 per gallon (BVI Gas Inc.) and a high of $3.26 per gallon (Texaco, Total).

Wholesale Diesel (Puerto Rico)​

Wholesale Gasoline (Puerto Rico)​

Crude Oil Benchmarks​

References​

• Datos de Combustible - DACO
• Crude Oil Futures via Yahoo Finance
• OPEC Reference Basket Price

Summary​

Crude oil benchmarks are up again this week, with US WTI currently marking $77 per barrel, up from $75 per barrel last week. Wholesale fuel prices see an uptick as well.

As seen by wholesale fuel prices collected by DACO on June 11th, wholesale diesel prices mark around $3.09 per gallon on average. We see a reported low of $2.99 per gallon (Bita's Fuel Corp) and a high of $3.21 per gallon (Texaco).

Wholesale gasoline prices on average marked around $3.18 per gallon, with a low of $3.10 per gallon (76 / Phillips) and a high of $3.28 per gallon (Total).

Wholesale Diesel (Puerto Rico)​

Wholesale Gasoline (Puerto Rico)​

Crude Oil Benchmarks​

References​

• Datos de Combustible - DACO
• Crude Oil Futures via Yahoo Finance
• OPEC Reference Basket Price

What to expect​

Crude oil had some price swings last week as OPEC+ members agreed to unwind some production cuts but then taking back statement stating that at any point it can be reconsidered and turned back. The expectation of additional supply in the market got popular benchmarks trading lower with WTI seeing a low of $73 per barrel. Afterwards, we saw crude oil in the US stabalize at around $75 per barrel to close off the week.

Generally, local wholesale fuel prices followed closely the crude oil benchmark price swings. We continue to expect some minor drops in fuel prices over coming weeks before bottoming out and increasing towards the end of the summer.

Highlights​

• OPEC+ production cut statements: OPEC+ had agreed to phase out voluntary cuts of 2.2 million barrel per day over a year starting on October 2024, but have clarified this can be rolled back at any time. These statements drove majority of activity for crude oil and fuel prices last week.

  "OPEC+ can pause or reverse oil production increases if the market weakens" - Saudi Energy Minister Prince Abdulaziz bin Salman

• Possible gasoline price hike due to refinery pressures: Demand on refineries could drive uptick of gasoline prices over the summer.

  "Over the course of the summer, we're going to see a lift in gas prices, probably closer to that kind of $3.65, $3.70 level. Nowhere near the point where it starts to make people change their mind on consumption, but I would expect we see a bottoming here, and throughout the course of the summer we see a little incremental rise as demand picks up..." - CIBC Private Wealth US Senior Energy Trader Rebecca Babin

• Crude oil expected to head back to the high $80: Seasonal demand could bring upwards price pressure to crude driving Brent towards the high $80s-$90 per barrel range.

  "Summer inventory draws should be enough to get Brent back into the high $80s-$90 range by September. We expect a seasonal uptick in demand to begin shortly and project demand for both products and crude to surge by 2.5 mbd [million barrels per day] and 4.0 mbd, respectively, between April and August." - Natasha Kaneva, JPMorgan's head of global commodities strategy

Crude Oil Benchmarks​

References​

• https://finance.yahoo.com/quote/CL%3DF
• https://finance.yahoo.com/quote/RB=F/
• https://www.reuters.com/markets/commodities/opec-could-tweak-oil-pact-if-needed-ministers-say-2024-06-06/
• https://finance.yahoo.com/video/oil-prices-energy-markets-were-215219614.html
• https://finance.yahoo.com/news/oil-falls-3-on-opec-production-cut-as-demand-worries-surface-175052930.html
• https://finance.yahoo.com/news/gas-prices-see-biggest-weekly-drop-of-2024-but-a-spike-may-come-later-this-summer-194117913.html
• https://finance.yahoo.com/news/oil-expected-to-head-back-into-high-80s-by-september-jpmorgan-analysts-say-163528060.html

Summary​

Crude oil benchmarks saw a downturn and then an uptick during the week. US WTI started the week at $76 per barrel, dropped to a low of $72 and we finally closed off the trading week at $75.52 per barrel. Drop was mostly due to OPEC+ members easing prodcution cuts over the next couple of quarters.

As seen by wholesale fuel prices collected by DACO on June 8th, wholesale diesel prices mark around $3.05 per gallon on average. We see a reported low of $2.95 per gallon (76 / Phillips) and a high of $3.19 per gallon (Texaco).

Wholesale gasoline prices on average marked around $3.16 per gallon, with a low of $3.08 per gallon (BVI Gas Inc.) and a high of $3.26 per gallon (Texaco, Total).

Wholesale Diesel (Puerto Rico)​

Wholesale Gasoline (Puerto Rico)​

Crude Oil Benchmarks​

References​

• Datos de Combustible - DACO
• Crude Oil Futures via Yahoo Finance
• OPEC Reference Basket Price

Summary​

Crude oil benchmakrs today are seen slightly up again, with US WTI trading at around $75 per barrel. Local wholesale fuel prices follow the uptick.

As seen by wholesale fuel prices collected by DACO on June 7th, wholesale diesel prices mark around $3.05 per gallon on average. We see a reported low of $2.92 per gallon (American Petroleum) and a high of $3.21 per gallon (Texaco).

Wholesale gasoline prices on average marked around $3.17 per gallon, with a low of $3.07 per gallon (American Petroleum) and a high of $3.28 per gallon (Texaco).

Wholesale Diesel (Puerto Rico)​

Wholesale Gasoline (Puerto Rico)​

Crude Oil Benchmarks​

References​

• Datos de Combustible - DACO
• Crude Oil Futures via Yahoo Finance
• OPEC Reference Basket Price

Summary​

Crude oil in the US (WTI) trades today at around $74 per barrel.

As seen by wholesale fuel prices collected by DACO on June 6th, wholesale diesel prices mark around $3.03 per gallon on average. We see a reported low of $2.87 per gallon (American Petroleum) and a high of $3.17 per gallon (Texaco, Total).

Wholesale gasoline prices on average marked around $3.14 per gallon, with a low of $3.05 per gallon (American Petroleum) and a high of $3.24 per gallon (Texaco).

Wholesale Diesel (Puerto Rico)​

Wholesale Gasoline (Puerto Rico)​

Crude Oil Benchmarks​

References​

• Datos de Combustible - DACO
• Crude Oil Futures via Yahoo Finance
• OPEC Reference Basket Price

Summary​

US WTI is seen trading today at around $73 per barrel, slightly up from yesterday.

As seen by wholesale fuel prices collected by DACO on June 5th, wholesale diesel prices mark around $3.03 per gallon on average. We see a reported low of $2.90 per gallon (American Petroleum) and a high of $3.17 per gallon (Texaco, Total).

Wholesale gasoline prices on average marked around $3.15 per gallon, with a low of $3.05 per gallon (American Petroleum) and a high of $3.24 per gallon (Texaco).

Wholesale Diesel (Puerto Rico)​

Wholesale Gasoline (Puerto Rico)​

Crude Oil Benchmarks​

References​

• Datos de Combustible - DACO
• Crude Oil Futures via Yahoo Finance
• OPEC Reference Basket Price

Summary​

Crude oil benchamakrs continue a downward trend, with US WTI futures contract trading at around $72.95 per barrel. Down from a close yesterday which was at $74.22 per barrel.

As seen by wholesale fuel prices collected by DACO on June 4th, wholesale diesel prices mark around $3.04 per gallon on average. We see a reported low of $2.91 per gallon (American Petroleum) and a high of $3.17 per gallon (Texaco, Total).

Wholesale gasoline prices on average marked around $3.15 per gallon, with a low of $3.06 per gallon (American Petroleum, BVI Gas Inc.) and a high of $3.24 per gallon (Texaco).

Wholesale Diesel (Puerto Rico)​

Wholesale Gasoline (Puerto Rico)​

Crude Oil Benchmarks​

References​

• Datos de Combustible - DACO
• Crude Oil Futures via Yahoo Finance
• OPEC Reference Basket Price

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.

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​

References​

• https://finance.yahoo.com/quote/CL%3DF
• https://finance.yahoo.com/quote/RB=F/
• https://finance.yahoo.com/news/u-gasoline-prices-continue-drop-163000648.html
• https://gasprices.aaa.com/state-gas-price-averages/
• https://gasprices.aaa.com/pump-prices-keep-slip-slidin-away-as-atlantic-hurricane-season-looms/
• https://www.investing.com/news/commodities-news/oil-prices-flat-as-rate-inflation-jitters-offset-big-inventory-draw-3462315?utm_source=yahoo&utm_medium=referral&utm_campaign=yahoo_finance
• https://www.bloomberg.com/opinion/articles/2024-06-03/opec-says-goodbye-to-its-100-a-barrel-oil-quest
• https://www.marketwatch.com/story/opec-agrees-to-extend-oil-production-cuts-in-effort-to-boost-prices-b00734a0?mod=william-watts&mod=article_inline

Summary​

US WTI closed the trading week at $76.99 per barrel, down from $79.83 per barrel at the start of the week (close to a $3 reduction).

As seen by wholesale fuel prices collected by DACO on June 1st, wholesale diesel prices mark around $3.09 per gallon on average. We see a reported low of $2.96 per gallon (American Petroleum) and a high of $3.21 per gallon (Texaco, Total).

Wholesale gasoline prices on average marked around $3.20 per gallon, with a low of $3.11 per gallon (American Petroleum) and a high of $3.28 per gallon (Texaco).

Wholesale Diesel (Puerto Rico)​

Wholesale Gasoline (Puerto Rico)​

Crude Oil Benchmarks​

References​

• Datos de Combustible - DACO
• Crude Oil Futures via Yahoo Finance
• OPEC Reference Basket Price