Last week crude stockpiles in one of the biggest oil consumers in the world plunged to the lowest since 2018, with inventories at a key storage hub falling toward critical levels.
markets has vaulted oil and retail fuel prices to levels not seen since 2014 – a key source of concern for consuming nations due to the economic impact of high energy costs.
“The oil market is too tight,” said Ed Moya, senior market analyst at OANDA.
While gasoline demand has turned a corner from winter lows and is near pre-pandemic levels, consumption of diesel, heating oil, and propane are underpinning the fresh record.
The rolling average for distillates consumption rose to the highest level since 2007 after back-to-back winter storms drove demand for heating and power generation in the Northeast.