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Thursday, April 25, 2024

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Recovery Spells Economic Opportunity for Heating Oil Sellers

As demand returns, RIN spikes blow out ULSD-ULSHO spread
As demand returns, RIN spikes blow out ULSD-ULSHO spread The summer driving season was set to kick off shortly as of this writing in early May, and this summer is shaping up to… https://oilandenergyonline.com/articles/all/recovery-spells-economic-opportunity-heating-oil-sellers/

Locating Lost Opportunity

A smaller than forecasted basis is far more common than the dreaded basis blowout
A smaller than forecasted basis is far more common than the dreaded basis blowout In the commodity space, basis can be defined in a variety of measures. For a refinery, basis is… https://oilandenergyonline.com/articles/all/locating-lost-opportunity/

The Calm After the Storm

As markets normalize, inventories stabilize
As markets normalize, inventories stabilize U.S. distillate stockpiles ended the 2019-2020 heating season well below their five-year average and even weaker than following the… https://oilandenergyonline.com/articles/all/calm-after-storm/

How Vaccine Rollouts Could Affect the Oil Market

As with the global economic recovery, everything hinges on the next few months
As with the global economic recovery, everything hinges on the next few months The past 12 months have revolved around the COVID-19 pandemic, which continues to evolve. Reduced… https://oilandenergyonline.com/articles/all/how-vaccine-rollouts-could-affect-oil-market/

Relative Ease

Strong stock levels could make for smooth sailing this heating season
Strong stock levels could make for smooth sailing this heating season Basis risks were looking relatively high at the start of the heating season last year, with East Coast… https://oilandenergyonline.com/articles/all/relative-ease/

Pricing Outlook for the 2020-2021 Heating Season

What we’re seeing right now and what it could mean moving forward
What we’re seeing right now and what it could mean moving forward With the start of the new heating season, I thought that we should take a look at current events and other… https://oilandenergyonline.com/articles/all/pricing-outlook-2020-2021-heating-season/

Rack to Retail

How to track this important margin more efficiently and effectively
How to track this important margin more efficiently and effectively My company has been managing profitable hedging strategies around fixed and capped programs since 1993. These… https://oilandenergyonline.com/articles/all/rack-retail/

A New Benchmark for U.S. Crude

S&P Global Platts launches American GulfCoast Select
S&P Global Platts launches American GulfCoast Select S&P Global Platts, a leading independent provider of information and benchmark prices for the commodities and energy markets,… https://oilandenergyonline.com/articles/all/new-benchmark-us-crude/

Major Oil Market Crashes in History

A look back at four of the steepest declines from the past 40 years
A look back at four of the steepest declines from the past 40 years The coronavirus pandemic and nationwide lockdowns across the world caused a sharp drop in economic activity,… https://oilandenergyonline.com/articles/all/major-oil-market-crashes-history/

Look Out Below

Crude oil futures fell into negative territory for the first time in history. Is heating oil next?
Crude oil futures fell into negative territory for the first time in history. Is heating oil next? On April 20, 2020, NYMEX WTI crude futures traded in negative territory for the… https://oilandenergyonline.com/articles/all/look-out-below/

Are Oil Prices Presenting an Opportunity?

Disciplined hedging is paramount during Black Swan events
There has been, appropriately, much discussion about the recent, so-called Black Swan event, the coronavirus. I’ve witnessed the term Black Swan often inserted where it doesn’t… https://oilandenergyonline.com/articles/all/are-oil-prices-presenting-opportunity/

2020 Hedging Survey

Oil & Energy’s annual survey arrives amidst oil price collapse, coronavirus pandemic
Before we jump in, it’s worth taking a look at the editorial calendar that helps Oil & Energy keep its Annual Hedging Survey on track each year. Typically, this editor begins… https://oilandenergyonline.com/articles/all/2020-hedging-survey/

What Determines Oil Futures Prices?

Eight key factors to track when making hedging decisions
What determines oil futures prices? We all know that prices are determined by supply and demand (Economics 101), so in the long run they are determined by global oil production… https://oilandenergyonline.com/articles/all/what-determines-oil-futures-prices/

Decennium

Hedge Solutions reviews 10 years of oil market movement
As we look toward a new decade, I thought it might be informative to also look back on the previous 10 years. To help guide this retrospective, I’ve provided some interesting… https://oilandenergyonline.com/articles/all/decennium/

Basis Blowout Ahead?

Warning signs are in place, but several questions remain
This year’s East Coast distillate stock building season seemed to be going well enough from early June through early August. East Coast stock levels were at a deficit to the… https://oilandenergyonline.com/articles/all/basis-blowout-ahead/

Seasonal Hedging Outlook

Prices are down, markets seem calm. So, what’s there to worry about? A lot, actually.
As of this writing on October 1, we find ourselves on the cusp of another adventure into the unknown. Let’s look at what the heating season might bring us in context of the three… https://oilandenergyonline.com/articles/all/seasonal-hedging-outlook/

How to Prepare Your Heating Fuel Business for IMO 2020

The impact of this incoming regulation could be felt by next heating season
There has been much discussion this spring and summer about the potential impact from the implementation of the IMO 2020 regulation. Due to the timing of the changeover to low… https://oilandenergyonline.com/articles/all/how-prepare-your-heating-fuel-business-imo-2020/

Status of OPEC Agreement Ahead of June Meeting

In February 2016, Saudi Arabian Oil Minister Ali Al-Naimi announced a plan for a potential crude production cut. In December 2016, for the first time in nearly eight years, the Organization of the Petroleum Exporting Countries (OPEC) reached an agreement …
OPEC producers are set to meet on June 25 and 26 in Vienna, Austria   In February 2016, Saudi Arabian Oil Minister Ali Al-Naimi announced a plan for a potential crude… https://oilandenergyonline.com/articles/all/status-opec-agreement-ahead-june-meeting/

Desulfurization: The Next Chapter

The desulfurization of distillate fuels continues this year. Before the Environmental Protection Agency (EPA) regulation began in 1993, diesel fuel contained up to 0.5% (5,000 parts per million or ppm) sulfur. EPA began phasing in more stringent regulatio…
The desulfurization of distillate fuels continues this year. Before the Environmental Protection Agency (EPA) regulation began in 1993, diesel fuel contained up to 0.5% (5,000… https://oilandenergyonline.com/articles/all/desulfurization-next-chapter/

Risks & Returns

A cursory glance at The Diff. on page 3 of our April 2019 issue shows the New York Harbor price for No. 2 Fuel Oil and No. 2 ULSD resting comfortably just under $2.00, at $1.977 and $1.999 respectively. The Barometer, also on page 3, lists WTI Crude at $5…
A cursory glance at The Diff. on page 3 of our April 2019 issue shows the New York Harbor price for No. 2 Fuel Oil and No. 2 ULSD resting comfortably just under $2.00, at $1.977… https://oilandenergyonline.com/articles/all/risks-returns/

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