Weekend Summary

By Published On: October 9, 2017Categories: Uncategorized

Have an article worth sharing? Send it to FUELSNews@mansfieldoil.com, and we’ll share it next week in our Weekly Summary segment.

U.S. Fuel Storage Decline Depresses Tank Rental Rates

We discuss fuel inventory levels regularly in this publication, but there’s an entire industry that exists behind those inventory numbers that we rarely mention – the storage owners. Rising prices have led suppliers to drain their storage levels, creating oversupply of storage in the market. Backwardated markets, where future prices are lower than current spot prices, have reduced or eliminated the profit to suppliers of storing fuel, putting pressure on storage companies. Click Here to read more from the Financial Times (subscription access may be required).

Oil Sands Pin Hopes on Two Troubled Pipelines After Energy East

The Energy East Pipeline, which would have pumped crude oil from Alberta all the way to the east coast of Canada, has been cancelled, forcing oil sand producers to rely on the construction of two other pipelines – Keystone XL and Trans Mountain. Keystone XL would connect Canadian oil producers to U.S. refining infrastructure, while Trans Mountain will connect product to Vancouver on Canada’s west coast. Currently, Canadian oil production relies heavily on rail transportation, which is notorious for being less safe than pipeline transportation. Click Here to read more from Bloomberg.

U.S. Oil Ports, Refiners and Producers Plan Re-openings after Hurricane Nate

Hurricane Nate blew over the Gulf Coast this weekend, leading producers to shut in over 90% of Gulf Coast production (recall that the Gulf Coast makes up nearly 20% of U.S. crude production). Now that the storm is passed, personnel are heading back to their rigs, and operations are resuming. So far, no significant damage has been reported for any rigs or refineries. After two storms bringing catastrophic damage, the oil industry took no chances, shutting down all major operations and evacuating personnel. Fortunately, the storm did not strength as much as Harvey and Irma, minimizing the damages. Click Here to read more from Business Times.

No More Free Lunch for Oil Producers

Oil producers in the U.S. have enjoyed a long period of easy money – investors were looking to cash in on expanding U.S. production, and flooded to supply cash for expansion. That’s changing now, however, as investors are beginning to demand reduced costs and higher returns. New oil fields will have to be placed on hold until market prices justify more expensive capex projects. Click Here to read more from Bloomberg.

This article is part of Uncategorized


Subscribe to our Daily Feed

Daily articles and insights from the fuel markets and natural gas space.


The information contained herein is derived from sources believed to be reliable; however, this information is not guaranteed as to its accuracy or completeness. Furthermore, no responsibility is assumed for use of this material and no express or implied warranties or guarantees are made. This material and any view or comment expressed herein are provided for informational purposes only and should not be construed in any way as an inducement or recommendation to buy or sell products, commodity futures or options contracts.

Stay on Top of the Fuel Markets

FUELSNews, your daily source of marketing information and insights

Subscribe to our publications and newsletters