The loss of the 335,000 bpd refining complex in Philadelphia, two separate refineries—Girard Point and Point Breeze joined into one, accounted for 28% of the refining capacity in the Central Atlantic, reducing PADD 1B capacity to 866,700 bpd.
Strength in the Japanese Yen chart suggests that crude oil weakness might mean economic softening with investors buying the Japanese Yen against the U.S. Dollar.
Liftings remain above normal in both Florida terminals. Prices are stabilized and only slightly higher. Wholesale prices seem to have flattened out and are now only slightly higher than where they were before the atypical lifting began.
Opportunistic gasoline prices spiked Friday in advance of Hurricane Dorian reaching landfall as Florida residents filled their tanks and possibly headed inland. The Orlando and Jacksonville charts, produced by DTN, reflect regular gasoline daily terminal liftings along with the wt. average rack price (solid blue line). The dotted line is a linear regression trend line.
Gasoline and diesel markets appear to be in good shape in advance of Hurricane Dorian reaching Florida shores. DTN is monitoring daily terminal volumes and prices once Dorian arrives and moves out.
Heading into the heart of the tropical storm season, we’re seeing that our gasoline supply and demand balances are very comfortable in the United States. That said, an active weather season could have significant impacts as storms develop in key geographic areas.
A key metric we are watching is the slowing of U.S. crude oil production growth in the face of negativity about global recession and the potential slowing of global oil demand growth.
The International Energy Agency predicts that the United States will become a leading exporter in the next three years.