- Retail regular gasoline prices rose by 21.4c in the last four weeks to $3.663/Gal. About 53% of the change was due to the price of crude oil, while the remainder was the refinery margin
- Scroll down for a chart of the RBOB-WTI crack spread, a measure of refinery margin. It shows elevated cracks this year
- Total motor gasoline inventories fell by 0.3 MMBbl/d for the week ending April 7 and are about 7% below the five-year average for this time of year
- U.S. Gasoline prices hit a five-month high (USAToday)
- U.S. retail gasoline prices rose for a third consecutive week, up 6.7c last week to $3.663/Gal
- “With oil prices touching their highest level of 2023 at nearly $83/Bbl, the national average price of gasoline has continued to inch higher,” said GasBuddy’s Patrick De Haan
- Additionally, strong global demand for oil due to economic recovery from the pandemic may have contributed to the price hike
- Furthermore, the looming driving season can also exert upward pressure on gasoline prices
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- Retail diesel prices fell by 19.4c in the last four weeks to $4.116/Gal. About 41% of the change was due to the price of crude oil, while the remainder was the refinery margin
- Scroll down for a chart of the NY Harbor ULSD-WTI crack spread, a measure of refinery margin. It shows elevated cracks this year
- Distillate fuel inventories fell by 0.6 MMBbl/d for the week ending April 7 and are about 11% below the five-year average for this time of year
- Global diesel market signals economic slowdown (BBG)
- Diesel demand, an indicator of industrial activity and consumer spending, is weakening in major economies, indicating an economic slowdown
- China's trucking activity has decreased, and diesel's premium to crude futures has hit a one-year low in Europe
- U.S. diesel demand is expected to drop by 2% in 2023, the biggest since 2016 (excluding the 2020 pandemic)
- Trucking, which consumes a large portion of diesel, is facing a demand pullback due to declining factory output, home construction, and changing consumer spending patterns in the U.S., while China's manufacturing activity eased unexpectedly in March
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