- Oil set to post a second-consecutive weekly loss
- WTI is trading at around $84/Bbl, relatively unchanged from yesterday but nearly $2 less than last week
- China, the largest oil importer in the world, is still facing uncertain crude demand
- Chinese President Xi said on Sunday that the government would maintain a strict Covid-zero policy, but it is reported that officials are considering reducing the required quarantine period for travelers
- Despite the contradiction, China implemented further lockdowns on Thursday due to a spike in new Covid cases in some regions of Beijing and other major manufacturing hubs
- The New York region is going to receive some much-needed diesel supplies thanks to a full pipeline and imports, which could result in lower prices (BBG)
- The Colonial pipeline, the largest in the country, is completely booked to transport diesel, heating oil, and jet fuel from Gulf Coast refineries to the East Coast
- A full pipe adds to the at least 1 MMBbl of imported diesel that will arrive in New York at the end of the month, just as parts of the Northeast fill up their tanks ahead of winter
- Pump prices for both diesel and gasoline were soaring in May, the last time the Colonial pipeline was completely booked for distillates
- Now, the average retail price of diesel has increased by 45 cents in the last two weeks to $5.336/Gal, which is 49% more than it was at the same time last year
- The White House is planning an action because diesel is so expensive and in short supply
- Brian Deese, director of the National Economic Council, said on Wednesday that diesel inventories are "unacceptably low"
- The Biden administration is exploring the idea of banning the export of gasoline, diesel, and other refined petroleum products, as well as additional releases from U.S. emergency stocks