Wholesale gasoline in California became the cheapest in the country this week, but that change has largely gone unseen at the pump, where consumers still pay the highest prices in the continental United States to fill up their cars.
The impact of Canadian and French refinery outages caused margins to fall slightly in the Atlantic Basin and Europe, despite stronger gasoline demand and higher inventories.
Demand for refined oil products is expected to continue growing in Africa, both in the short and medium terms. However, the continent’s refining capacity is unlikely to keep pace as commercial risks threaten to hold back planned new refineries and the expansion of existing facilities.
US refinery utilization rates have increased in some areas following the peak of maintenance season.
The Asia-Pacific region dominates in the total number of active projects in all sectors of the downstream hydrocarbon processing industry. Just as China has seen unprecedented growth over the past decade, India is emerging as the globe’s new oil demand center.
According to Hydrocarbon Processing’s Construction Boxscore Database, there were nearly 90 new project announcements from January 2015 to June 2015.
Fuel shortages have caused an increase in cancellations and delays to internal flights in Nigeria over the last few days, a spokesman for the aviation authority said this week.
Past experience from the US and other advanced economies suggests massive highway construction will promote the creation of a more integrated national economy and increase freight and passenger traffic further. That will spur further rapid growth in transport fuels such as gasoline and diesel.
Gasoline stocks fell 2.5 MMbbl, compared to forecasts for a 150,000-bbl drop. Distillate stockpiles, which include diesel and heating oil, fell 3.2 MMbbl, versus expectations for a 642,000-bbl drop.
The government hopes lifting costly fuel subsidies, causing prices to rise by up to two thirds at the pumps, will help alleviate the worst crisis in decades in Africa's biggest economy.