Oil Markets

Oil markets crashed on the emergence of the omicron variant of COVID-19, leaving market jitters and increased volatility. S&P Global Platts reporters Nick Baldwin and Virginie Malicier discuss with Joel Hanley the reaction and prospects in crude oil and jet fuel, two of the most pandemic-sensitive markets in the oil world.

The Asian jet fuel market is finally witnessing renewed interest after COVID-19 unleashed an unprecedented crisis in the aviation industry. Heightened vaccination rates in many Asian countries, relaxation of zero-COVID tolerance policies by many countries, and the introduction of vaccinated travel lanes by various nations has boosted jet fuel prospects. The optimism around air travel bodes well for jet fuel demand and prices. Yet, the threat of the pandemic still lingers. With aviation's environmental impact also in focus, many Asian airlines are forging ahead with the use of sustainable aviation fuel. In a discussion with S&P Global Platts Senior Editor for Petroleum News Surabhi Sahu, Head of global demand and Asia analytics Dr Kang Wu and Associate Editor Oil markets Amy Tan share their insights into what the future holds for the jet fuel market and the feasibility of the widespread adoption of sustainable aviation fuels.

The strong backwardation in diesel and gasoline forward pricing is reflective of a tight fundamental picture for road fuels in Europe as demand steadily rises and refineries grapple with high crude feedstock and running costs as natural gas prices soar, curtailing supply. Amid this market tightness, inventories continue to draw as the opportunity cost of storage rises, reducing supply buffers. At the same time, refiner hedging is exacerbating the strength in calendar time spreads. In this episode of the Oil Markets Podcast, S&P Global Platts Global editors Rowan Staden-Coats and Lucy Brown discuss with Joel Hanley backwardation and what it means for road fuel markets in Europe.

Demand to ship gasoline on Colonial Pipeline has outpaced available space since October, a first in 19 months. The Atlantic Coast has seen higher demand, and imports are low. The spread between offline gasoline prices at the end of Line 1 in Greensboro, North Carolina, and prices at the origin in Houston, Texas, have reached their widest seasonal level in the last three years. In the meantime, Gulf Coast shippers are paying a premium to ship their barrels as soon as possible. In this episode of the Oil Markets Podcast, S&P Global Platts gasoline editors Anna Trier and Sarah Hernandez discuss why this is happening and what the impact is on gasoline prices in the Gulf and Atlantic Coast regions.

The continued strength in the Brent complex as a whole, demonstrated by the Dated Brent benchmark breaching the $85/b threshold in late October, masks the differing supply and demand dynamics for both sweet and sour grades in Europe, arguably low global stock levels, selective refinery demand and declining official selling prices or OSPs by National Oil Companies. With OPEC+ set to meet on Nov. 4, how will these producers react to a mixed physical picture amid diplomatic pressure to pump more? In this episode of the Oil Markets Podcast, S&P Global Platts Global Brent lead Emma Kettley and Head of Oil News in London Paul Hickin discuss with Joel Hanley the most recent trends in the North Sea crude complex and its effect on important regional crude spreads ahead of the key OPEC+ meeting.

In a shift of strategy to battle surging oil prices, Asia's leading oil consumers India and China have started selling crude oil from their strategic reserves for the first time ever, a sign that import-dependent countries in the region are opening up to the idea of using oil reserves not only at times of geopolitical uncertainty and supply risk, but also as a cushion to ward off financial risk. Beijing held its first state auctions in September, while Indian Strategic Petroleum Reserves has also started selling crude oil to state refiners. In a wide-ranging discussion with S&P Global Platts Asia Energy Editor Sambit Mohanty, Asia Head of Content Calvin Lee, and Platts Analytics Chief Geopolitical Advisor Paul Sheldon share their insights on how Asian oil importers are working towards balancing rewards with risk, as well as the implications of those decisions on global oil markets.

High natural gas prices are leading to both a tighter European supply of middle distillates and greater global gasoil demand, while the diesel cargo market was supported by higher demand into Germany and an open arbitrage to the US. In the meantime, jet fuel demand is slowly recovering, the paper market is flying amid bullish market sentiment with aviation fuel consumption expected to pick up from November when the US lifts its travel ban. In this episode of the Oil Markets Podcast, S&P Global Platts associate editors Virginie Malicier and Gary Clark discuss with Francesco Di Salvo the most recent trends in European diesel, heating and jet fuel markets.

Car tanks may be running empty in the UK after panic buying at the pumps amid a lack of lorry drivers to bring supply from refineries and oil terminals to the retail stations, but what impact if any does this have on the broader gasoline and diesel markets? And what are the consequences of the replacement of E5 gasoline pumps by E10 pumps in the country? In this episode of the Oil Markets Podcast, S&P Global Platts associate editors Rowan Staden-Coats and Joseph McDonnell discuss with Joel Hanley the most recent trends in the overall well-supplied UK gasoline and diesel markets.

The dramatic revival of oil and gas prices, the future of fossil fuels in a changing energy landscape, and the role energy will play in the recovery path from the pandemic were some of the main themes at the 37th Asia Pacific Petroleum Conference -- or APPEC 2021 -- organized by S&P Global Platts. In a wide-ranging discussion with Asia Energy Editor Sambit Mohanty, Global Head of Pricing and Market Insight Dave Ernsberger and Head of Global Demand and Asia Analytics Dr. Kang Wu share their views on the changing narrative for the oil market, the impact of energy transition on Asia's energy basket, the future of refining, and the road to demand and price recovery. Access our latest special report: Igniting the spark of energy transition

Just as the summer finally comes to an end and mornings become chilly, we would be expecting demand for heating oil to ramp up in Europe, as no boom has been reported yet. Furthermore, new environmental regulation will be applied in many European countries in 2022, which could lead to some changes in buying patterns. In this episode of the Oil Markets Podcast, S&P Global Platts associate editor Lawrence Toye and senior editor Virginie Malicier discuss with Gary Clark how higher flat prices and upcoming tax change are impacting current demand for 50ppm, 0.1% gasoil and kerosene. In this episode of the Oil Markets Podcast, S&P Global associate editor Lawrence Toye and senior editor Virginie Malicier discuss with Gary Clark how higher flat prices and upcoming tax change are impacting current demand for 50ppm, 0.1% gasoil and kerosene.