- Oil surges to its highest in six weeks and heads for a weekly gain
- July ’23 WTI gained 66c this morning to trade around $71/Bbl
- Expectations of more economic stimulus in China seem to outweigh tight monetary policies in the West
- Additionally, China's refinery processing increased in May, reaching the second-highest on record
- Moreover, the markets seem to emphasize more on the Fed's rate-hike pause, downplaying the projection of at least two more hikes this year
- A weak dollar, heading towards its biggest weekly drop since January, continues to support crude prices
- The gasoline premium over crude reached an 11-month high, driven by robust U.S. gasoline demand
- AEGIS expects oil prices to see support in 2H2023 as OPEC+ and Saudi voluntary cuts coincide with rebounding demand, causing outsized global inventory withdrawals
- New York Sees Gasoline Import Surge Amid Robust Summer Driving Demand (Bloomberg)
- Despite a global fuel market slowdown, U.S. gasoline demand, particularly in New York, is soaring due to the onset of the summer travel season and lower pump prices compared to 2022
- At its fastest pace since August 2019, New York is importing about 0.47 MMBbl/d of gasoline from various countries
- Increased imports have revived the central Atlantic Coast's gasoline inventories, offsetting local refinery issues and limited pipeline capacity