European Commission may ease restrictions on air travel
RBOB Cracks Grow Amid Bayway FCC Closure
The US dollar tests a maximum of eight sessions
Crude oil futures settled at their highest level since mid-March on May 4 as improved forecasts for demand in Europe, the US and China overshadowed the negative impact of regional restrictions on the pandemic.
Receive daily email alerts, follower notes and personalize your experience.
June NYMEX WTI rose $ 1.20 to $ 65.69 a barrel, while July ICE Brent rose $ 1.32 to $ 68.88 a barrel.
It was the highest rate of the coming month for WTI since March 11, while Brent oil futures last rose on March 12.
The European Commission is considering allowing non-essential flights from outside its Member State to travelers vaccinated against COVID-19 in the hopes of strengthening demand in the jet fuel market as the holiday season approaches.
The commission is inviting member states to allow people who have received an EU-approved vaccine to enter the economic bloc, the EU said in a May 3 statement.
In June, the NYMEX RBOB climbed 4.97 cents to $ 2.1512 a gallon, while the June ULSD climbed 4.69 cents to $ 1.9988 a gallon, its highest level since January 7, 2020.
“Plans by the EU to ease restrictions on vaccinated travelers this summer helped to bolster expectations of an extraordinary recovery in energy demand on the horizon following a strong rebound in food demand in the US and China,” analysts at TD Securities said. “These are crushing fears that the rampant spread of COVID-19 in India will hold back the global recovery, especially as the flattening curve in India suggests the spread can be contained by avoiding a catastrophic worst-case scenario.”
Platts Analytics expects demand for jet fuel and kerosene in Western Europe to grow by 246,000 barrels per day this year to an average of 971,000 barrels per day after more than halving in 2020. The region’s demand for aviation fuel and jet aircraft is not expected to recover to 2019 levels (1.5 million barrels per day) until 2040.
“Crude oil prices remain strong as fundamentals on both the supply and demand side remain very optimistic,” Edward Moya, senior market analyst at OANDA, said in a note. “The energy market no longer raises concerns about oversupply as US production is likely to remain stable and OPEC + is sticking to its plan to gradually increase production. Crude oil demand outlook is getting mixed, but nothing too negative to reverse the overall upward trend. “
The higher rate on oil occurs despite the appreciation of the US dollar. The first month ICE US dollar index traded at 91.29 in daytime trading, rising from its close on May 3 at 90.945 and hitting its highest close since April 22.
RBOB CRASHES UP IN A CLOSED DRIVE ENVIRONMENT
Phillips 66 removed a 145,000 bpd fluid catalytic cracker at its 258,000 bpd Bayway refinery in Linden, New Jersey late May 3 after a leak was discovered, reported May 4 a source familiar with refinery operations.
Quotes on ICE New York Harbor RBOB for the first month compared to Brent rose to $ 20.91 per barrel in daytime trading, which corresponds to the highest closing level since August 2017.
The shutdown of the gasoline plant, which sources say is due to be shut down for several days, is likely to increase pressure on already limited regional gasoline supplies at a time when suppliers tend to build up ahead of the busy summer auto season.
For the week ending April 23, US Atlantic stocks were about 2.3% below their five-year average, according to the US Energy Information Administration.