Gasoline Demand is Down 7.1% Compared to Last Year
December 9, 2022
Energy prices started out yesterday trading higher on the easing COVID restriction in China and on the news of the Keystone Pipeline having to reduce flows due to an oil spill. Once word got out that the spill was not going to impact the line for long, and the fact that China is talking a good story about easing restrictions, but they are dragging their feet on making it happen, the market turned around and sold off. The energy markets are still worried about weak economic outlooks from China, Europe, and the United States.
The Keystone Pipeline news is fluid with some stories saying no long-term impact and other stories saying the leak is still spilling oil in Kansas. Eventually, the real impact will be out, but for now headlines are unclear.
Crude oil prices fell for the fifth straight trading day and traded to the lowest price levels in a year.
Gasoline demand is down 7.1% based upon a four-week average versus last year.
US containerized rail freight in October was running at the slowest seasonally adjusted rate since 2013, reflecting weakness in the manufacturing economy and cutting consumption of diesel.
The following is a result of the new price cap on Russian oil and embargo. Turkey’s maritime authority said it would continue to block the passage of oil tankers without appropriate insurance letters, adding that the insurance checks on ships in its waters was a “routine procedure.” The number of oil tankers waiting in the Black Sea to cross Istanbul’s Bosphorus strait on the way to the Mediterranean increased by five to 16 on Thursday amid talks between Western and Turkish officials on steps to resolve the tanker queues there.