- Higher-than-expected oil demand has helped oil rally 20% since early July
- Global oil demand has reached 103 MMBbl/d for the first time, according to the IEA
- “Oil demand is scaling to record highs, boosted by stronger summer air travel, increased oil use in power generation, and surging Chinese petrochemical activity,” the Paris-based IEA said
- AEGIS notes that strong demand coupled with OPEC+ supply cuts threaten to push oil prices higher
- Oil differentials and crack spread:
- WTI Midland and Magellan East Houston (MEH) both traded at their largest premiums to oil at Cushing in four weeks on Thursday (Bloomberg)
- MEH rose 15c to +$1.55/Bbl to Cushing
- WTI Midland was also up 15c to +$1.40/Bbl on Thursday
- The Nymex gasoline crack rose 20c to 39.19/Bbl, highest since August 1
- The gasoline crack is seasonally at its highest price in at least 20 years as demand surges and global product inventories are low
- WTI Midland and Magellan East Houston (MEH) both traded at their largest premiums to oil at Cushing in four weeks on Thursday (Bloomberg)