Oil Markets

While the pandemic is far from over and coronavirus cases are still rising in some Asian countries, the front-month Brent crude futures breached on June 1 the $70/barrel ceiling and extended the rise the next day. From OPEC’s optimistic demand forecasts to uncertainty over Iran’s production, caution seems to dominate the medium-term, and the longer-term role of energy transition may not be as bearish for prices as one might think. In this episode of the Oil Markets Podcast, S&P Global Platts reporters Nicholas Baldwin and Eklavya Gupte discuss with Joel Hanley the reasons behind the bullishness in crude oil futures.

China on May 14 announced that it will implement a consumption tax on mixed aromatics, light cycle oil and bitumen blend from June 12 in an effort to close a loophole in its tax system. This tax is expected to have repercussions not only in the domestic market, but also in the regional refined products market and crude markets.   Mixed aromatics and light cycle oil or LCO are used as blend stocks in gasoline and gasoil, and bitumen blend is used as a feedstock by independent refiners.   The tax is expected to alter domestic supply-demand balances, regional trade flows, and types of crudes imported into China.

While the May 7 outage of the Colonial Pipeline prompted fears of fuel shortages on the US Atlantic Coast, it also led to talk of extra gasoline and diesel moving from Europe. But with COVID restrictions easing on both sides of the Atlantic, there are longer-term drivers at play. In this episode of the Oil Markets Podcast, S&P Global Platts reporters Rowan Staden-Coats and Allen Reed discuss with Joel Hanley the latest trends on these vital road fuel markets.

Global crude prices have staged an impressive rally, recovering to pre-COVID levels. However, many US Gulf Coast crude differentials and regional spreads are yet to normalize, raising the question if the 2020 demand shock and ongoing infrastructure buildout will have a permanent impact on relative prices. S&P Global Platts Americas Crude Managing Editor Laura Huchzermeyer discusses recent price trends on the Gulf Coast and the Platts AGS waterborne crude assessment with Senior Pricing Specialist Kristian Tialios and Associate Director Matt Eversman.

While the European jet fuel market has yet to recover from the pandemic and continues to trade at low cash premiums, will demand for aviation fuel be boosted by the upcoming easing of travel restrictions within Europe and the potential resumption of non-essential trans-Atlantic flights? In this episode of the Oil Markets Podcast, S&P Global Platts reporters Virginie Malicier and Thomas Washington discuss with Gary Clark the latest news on the travel front and their expected consequences for the jet market.

The astronomical surge in India's COVID-19 cases to record highs has baffled policymakers and overwhelmed the country’s medical infrastructure. The current spread of infection has raised concerns that a crisis of unprecedented magnitude would take a toll on oil demand. S&P Global Platts Senior Asia Energy Editor Sambit Mohanty talks to Rajat Kapoor, Managing Director for Oil and Gas at AWR Lloyd, and Chris Midgley, Global Head of Analytics at Platts, to unpack the factors that are affecting India's oil demand growth, and the implications this would have on the global oil market as well as OPEC's production strategy.    

While the European gasoline market has been increasing strengthening versus its middle distillates counterpart, weighed down by COVID-19 restrictions in Europe, this has in turn led to a growing divergence between prices of low-sulfur and high-sulfur vacuum gasoil on the old continent. In this episode of the Oil Markets Podcast, S&P Global Platts reporters Stepan Lavrouk and Joseph Mcdonnell discuss with Joel Hanley how a lack of gasoline on the others side of the Atlantic impacts which VGO European refiners prefer to use.

Soybean futures continue to support RVO prices as the US market awaits a Supreme Court decision to determine the future of small refinery exemptions. European exports continue to head toward the East Coast on improved gasoline cracks and market optimism, pressuring New York Harbor prices lower. Gulf Coast prices have spiked to three-year highs as refineries stabilize operations.

While the grounding of the Ever Given in the Suez Canal has created countless memes, it has also reminded the world on the fragility of supply chains. In this episode of the Oil Markets Podcast, S&P Global Platts reporters Charlotte Bucchioni and Britt Russell-Webster discuss with Joel Hanley the impact of the blockage on freight and fuel markets, as well as the outlook as the queue slowly clears.

Major airlines in Asia have identified sustainable aviation fuel as having a potential to make a significant contribution to the global goal of reducing carbon emissions from commercial aviation. But the industry faces many challenges to overcome before SAF's potential can be realized. The impact of the coronavirus pandemic on the travel industry is on top of this list. S&P Global Platts oil experts Philip Vahn, Surabhi Sahu and Jing Zhi Ng are joined by senior analyst Alexander Yap to discuss Asia's cleaner aviation fuel initiative, Asia's overall jet fuel market fundamentals, and what's in store for the aviation industry post-pandemic. Learn more: S&P Global Platts Launches SAF and & HVO values in Asia Explore now: The Platts Atlas of Energy Transition, your map to the sustainable commodity markets of the future