Market Close: Oct 25 Up, Diesel Up 4.71 cents, Gas Up 18.58 cents
Oct 25th, 2022 by loren
Fueling Strategy: Please have your tanks full of fuel tonight before 23:00 CST, Wednesday prices will jump UP 9 cents then Thursday look for prices to continue UP 5 cents ~ Be Safe
NMEX Crude $ 85.32 UP $.7400
NYMEX ULSD $3.9672 UP $.0471
NYMEX Gas $2.9160 UP $.1858
NEWS
Diesel appears scarce heading into the northern hemisphere’s winter and will push fuel prices higher, bedeviling policymakers who are focusing on crude to tame energy inflation, warned Goldman Sachs Group in a note to clients.
Under investment in the nation’s fuel making capacity, exacerbated by refinery closures and disruptions, is leading to a shortage of refined products, especially diesel, whose stocks are at “unprecedentedly low levels,” said the bank. Goldman sees an “incredibly challenging” first quarter as the Group of 7 embargo on Russian products goes into effect.
As a result of what it’s describing as a structural shortage of product, Goldman raised its price forecast for gasoline and diesel next year to $4.32 and $5.07 a gallon, respectively, from $3.99 and $5.34. The bank sees gasoline prices higher even as it forecasts demand falling below 2021 levels.
The bank warned that many of the government’s efforts to fight higher energy prices focus on crude and have little impact on fuels, for which consumers actually pay.
“Refining constraints can create a sharp wedge between where crude and product markets clear, making policy management of crude supply less effective at controlling consumer prices,” analysts including Callum Bruce and Roman Langlois wrote in the note.
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