US Weekly Oil Summary: Gasoline Prices to Fall in 2024

Lower gasoline and diesel prices are expected in 2024 after two years of above average gas prices according to the GasBuddy Fuel Price Outlook. GasBuddy expects the yearly national average will drop from $3.51/gal to $3.38/gal in 2024.

• Arrivals of European gasoline into the USA fell 20% on the week to a four-week low in the seven days to Dec. 21, according to Bloomberg.
• EIA Weekly US Petroleum Summary - w/w change week ending Dec 22: Crude stocks -7,114 vs Exp -2,880, Crude production 0, SPR stocks +793, Cushing stocks +1,508
• Increasing refinery capacity in the Latam region and growing competition from Russia could squeeze US exports to the region in 2024, according to Platts.
• The total US rig count rose two during the week to 622, according to Baker Hughes Dec. 29.
• The US military is trying to reassure shipping companies that the task force to protect the Red Sea route is making it safe to transit despite the threat of Houthi rebel attacks.
• USD: In line with the slightly lower front-end US yields this week, the USD index continued to trade with a bearish tilt, culminating in a fresh four-month low on Thursday. Despite a modest recovery to close the week, the DXY remains an impressive 5.7% off the October highs and will look to 100.00 as the next notable support.
• The Chicago Business Barometer™, produced with MNI reversed -8.9 points to 46.9 from 55.8 in November.
• US jobless claims rose +12k to 218k in week to Dec. 23.