OPIS Warns About US Gasoline Oversupply

OPIS expects US gasoline prices to keep facing downward pressure because of oversupply and weak demand according to its co-founder Tom Kloza in a CNBC interview.

• “I could make a strong case for a large [US] gasoline glut in the next 60-90 days” he said.
• “Right now, gasoline isn’t fetching much of a profit for [US] refiners, they’re making more gasoline than they would like to make because they need to make profitable diesel and jet fuel and they are running a very light sweet crude oil” Kloza added referring to the more gasoline rich yield of those types of crude.
• Kloza called winter fuel supplies in the US as being in “good shape” at present referring to gas, kerosene, heating oil and diesel but warned an extended cold winter could see a parabolic move in their prices.
• He said US temperatures over the next 40-days are critical for US winter fuel supplies heading into the remainder of winter.