The Shipping Fuel Of The Future
The Shipping Fuel Of The Future | OilPrice.com
1. Cushing Premia Soar as Rock-Solid Demand and Low Stocks Put Pressure on WTI
- The price of the US light sweet benchmark West Texas Intermediate, sold for delivery at Cushing, Oklahoma, saw a meteoric rise in physical premia as the oil market suspects one company of bidding its price up.
- The Cushing price of WTI soared to a $1.3 per barrel premium vs. the next month this week, the highest since November 2022, indicating very tight supply in the heartland of the US oil industry.
- Reportedly, it is Atlantic Trading and Marketing, the US trading arm of France’s energy major TotalEnergies (NYSE:TTE), that keeps on bidding up the US benchmark, brushing aside worries of high outright prices as refinery margins remain unprecedentedly profitable.
- Crude inventories at Cushing have been steadily eroding over the past three months to a mere 22.9 million barrels, halving since mid-June on the back of robust refining demand for US barrels.
2. Extended BRICS+ Brings Further Alignment of Oil Producers
- The addition of Saudi Arabia, Iran, UAE, Egypt, Ethiopia and potentially even Argentina into BRICS, forming a new BRICS+ grouping, has the potential to consolidate the world’s leading energy suppliers.
- BRICS+ domination will be especially notable in renewable energy where the alliance is set to boast 11 TW of capacity by 2050, more than double the 4.5 TW that G7 countries are expected to reach by that point.
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Related Knowledge Center: ENERGY BASICS: petroleum
While electric-powered vehicles may be the ride of the future, oil remains at least for now the dominant fuel for transportation around the world. And after a period of time at the end of the 20th century when oil was subject to wide fluctuations in price, new supplies in North America as a result of non-conventional recovery techniques have helped stabilize prices.