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Crude Oil is currently trading at $53 per barrel for March, and for the last month has been ranging $52 to $54 per barrel. The oil market moved higher as OPEC and non-OPEC countries made agreements to reduce oil production while the United States was actually increasing production.
An interesting development is happening with Crude Oil production. As OPEC and non-OPEC countries are following their scheduled production cuts for the last two months, the United States has increased production to offset any reduction from the OPEC cuts. The United States has increased Crude Oil exports, while building record domestic inventories at the same time.
April crude oil pricing has ranged between $50.00 and 53.80 per barrel. It appears that the OPEC and non-OPEC countries are adhering to the agreement of a global market reduction of 750,000 barrels per day in the attempt to bolster pricing. Higher crude prices have resulted in the doubling of the operational well count in the United States from a year ago.
Radchem is seeing an increase in demand for solvents and chemicals into construction related companies, packaging, automotive coatings, automotive aftermarket products, transportation, agricultural applications, and asphalt related coatings.
Energy prices made a shift and moved lower in June by almost 20 percent. The increase in Crude oil production in the United States and Northern Africa along with steady output from Russia resulted in higher global inventories even though OPEC stayed firm with their product cuts. Crude Oil dropped almost 9% in just the last 3 weeks and is trading between $42.5 per barrel and $45 per barrel.
During the first part of July, energy prices had been trading lower with Crude Oil in the $45.00 per barrel range. Recently, Crude Oil has been trading at its highest levels in six weeks due to the outcome of a meeting in Russia on Monday, July 24th of oil producing countries. Saudi Arabia agreed to an additional production reduction and Nigeria agreed to production cuts.
In an effort to stop oil prices from falling any further and to push for an increase in oil prices, Russia and Saudi Arabia, the two largest crude oil exporters, said they would cap oil output at the levels they produced in January of 2016.
The Acetone increase by the Producers and major brokers who support barge tanks are firm. Acetone will be increasing a minimum of $.03/LB, but some announcements are actually set for $.05/LB on April 1, 2016.
Crude Oil prices have jumped back and forth from the high $30’s to the mid $40’s per barrel all month. There were some expectations that Crude Oil could take a jump if the OPEC countries would have agreed to lower production rates in a meeting this month, but they failed to come to an agreement.
The recent decision by Britain to leave the European Union has had an immediate effect on global oil prices. After the Brexit vote last Friday, oil prices dropped about $4 per barrel or about five percent lower from $51 to $47 per barrel. It is too early to tell if this is a temporary drop or something that will continue to impact the global oil prices.
The Citgo Petroleum Refinery at Lemont, Illinois is having a problem with their UDEX Unit which yields Heptane, Hexane, and Textile Spirits. The problem has been going on for 2 weeks, and it seems that the warm outside temperatures have had a negative effect on their cooling tower which has caused them to significantly slow down their production rate.
Crude Oil has dropped back down to the $43 per barrel level. The OPEC countries alleviated their expectations of an agreement to lower or limit the production of Crude Oil because of planned increases in production and output by several countries. OPEC members are still planning a meeting on September 28th to discuss the levels of production and the market.
Crude Oil prices have firmed up and are holding in the low $50’s per barrel. Wholesale gasoline at the rack has kept pace and is trading in the $1.52 per gallon range. Ultra Low Sulfur Diesel Fuel is about $.10 per gallon higher and trading close to $1.61 per gallon.
Oil prices rose over 12% in the last two weeks after OPEC agreed to cut production by 1.2 million barrels a day. Crude Oil futures closed up last week to $51.50 per barrel. The OPEC agreement becomes effective January 1, 2017. Russia also made a commitment to cut their output by 600,000 barrels per day.
The petroleum market has been weak all month. Crude Oil is trading between $45 and $48 per barrel. Gasoline is trading around $1.35 per gallon. Gasoline has dropped another $.20 per gallon since last month.
Crude Oil inventories in the United States are high, but Crude prices have moved up from $45 per barrel to the low $50’s because of reduced drilling rates. Crude Oil is currently trading between $51 and $53 per barrel and has been bouncing around all month.
Get ready for a good ride! Pricing for solvents in 2015 appears to be on a roller coaster. Crude oil plunged 4% this week to $42.85 per barrel because of growing inventory, no pullback in production, and closed at the lowest level since 2009.
Crude Oil continues to move up. It is currently trading at $57 per barrel, which is up $10 per barrel from last month. This increase is in spite of 15 consecutive weeks of Crude Oil Inventory increases.
Crude Oil is trading in the high 50’s. Crude closed on June 19th at $59.61 per barrel. Gasoline blend stock continues to increase in value which is the only reason the market has seen increases for Toluene, Xylene, Aromatic 100, and Aromatic 150.
The push for a deal with Iran that would allow them open sales of their crude, in combination with strong production rates around the world, and along with weaker demand for petroleum distillates, have made crude oil values drop nearly $10 per barrel in the last month.
The energy markets are moving lower. Crude Oil closed at $38.24 per barrel on Monday, August 24th, and the bottom keeps dropping. The drop in oil prices are a result of a sharp decline in demand from China along with the OPEC countries, led by Saudi Arabia, maintaining a continuous production of oil in an effort to gain world market share.
In my August Market Report I forecasted that when British Petroleum’s (BP) Whiting, Indiana Refinery came back from an unscheduled downtime, that gasoline prices at the pump would come down anywhere from $.40 to $.60 per gallon.
This week crude oil continued to drop. On Friday, November 13th crude oil closed at $40.74 per barrel which was down from $48 per barrel 9 days prior. Gasoline, diesel fuel, jet fuel, Kerosene, and other petroleum products including hydrocarbon solvents should be affected if the oil prices stay down or continue to drop.
Crude Oil prices continue to move lower. Inventory of Crude Oil remains at all time high levels. Congress is attempting to lift the 40 year ban on Crude Oil exports from the United States. If the ban is lifted, OPEC’s influence on Crude Oil
prices would be much weaker.
Crude Oil has been consistently trading over $100 per barrel. Fuels and distillates have been increasing in value. Jet Fuel, Heating Oil, and Diesel Fuel have all moved up by more than $.15/G in the last three weeks.
All of Radchem’s staff participated in its annual 2014 Responsible Distribution Training workshop on March 10, 2014. The reoccurring training covered Responsible Distribution and U.S. DOT – HM 126f.
With summer in full swing we see gas prices on the rise. The reasoning for this is that crude oil has spiked up about $4.00 per barrel in the past week because of an offensive by the Islamic militants in Northern Iraq which raised fears about export from OPEC’S second-biggest producer.
There were significant cost changes in July, and you can expect to see more in August. The following is a list of the pricing moves made in July, and some anticipated moves for August.
We at Radchem urge you to support and encourage legislature that the National Association of Chemical Distributors (NACD) recently brought to our company’s attention. This legislature will greatly impact our industry’s ability to transport chemicals via rail and by transport truck.
Radchem Products, Inc. is committed to meeting OSHAs Globally Harmonized System of Classification and Labeling of Chemicals (GHS), June 1, 2015, deadline for chemical manufacturers and distributors to ship materials with HazCom 2012-compliant labels and Safety Data Sheets (SDSs).
Crude Oil has dropped for a fourth day taking U. S. prices down to $55.91 per barrel. This is the lowest level since 2009. The price of crude oil has dropped by 48% in the last 6 months.