A mixed bag, with crude falling, as well as gasoline, jet fuel and SPR. Distillate edged up, as well as Jet fuel.
Gasoline consumption is edging downward on a 4 week moving average. -2.8% compared to year ago levels, and -0.5% on the week to week 4 week average.
Pump prices for gasoline are staying in a somewhat narrow band. However diesel prices could very well break through all time highs, set in June of 2022. $6+ for a national average is certainly within the realm of possibility, with California diesel possibly topping $8 in the near future.
So some fun facts. The U.S. consumer uses about 1/3 of global gasoline consumption, while the U.S. refiners produce about 1/6 of global diesel product, after export the U.S. consumes... about 12% of global diesel products.
U.S. refiners are operating at near record levels, to meet the demand. The global demand of diesel... is driving the price upward, at an astonishing pace. Despite refining about half as much diesel, as gasoline, the refiners are making 70% more on that diesel.
One would think the refiners might wish to make even more, by tweaking the process to produce more diesel. While that is theoretically possible, it would also cause gasoline stocks to slip, thereby driving up gasoline pump prices, which is more politically visible.
So while there is a bit of stability in gasoline prices, the diesel market will be allowed to escalate prices until, it becomes politically visible. However the majority of the public will focus on the pump price directly in their face and a minority will possibly virtue signal their indigation of diesel prices.
What I am saying is... diesel prices are set to rise another 82¢ a gallon from today's price, while gasoline will likely stay in their current range.
Feel free to bookmark and come back in a few weeks, to see how accurate I am, or point out my inaccuracies.
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