US refiners processing most oil since 2007

Ramping Up!

Iran may be ramping up the pressure on the global markets, but US refiners seem to be rising to the occasion. According to data compiled from the Energy Information Administration, Dow Jones News points out that US refiners boosted crude-oil processing by 2.2% last week to an impressive 14.7 million barrels per day barrels day, which was the highest level for the week since 2007.

This surge came as the demand for US diesel exports is going through the roof. Record cold temperatures in Europe helped send US diesel exports to a record high. Reuters News reported that according to IEA data, estimated distillate exports hit a whopping 1.124 mln bpd, up from 996,000 bpd in the previous record report. This of course led to a surprise drawdown in crude supply of about 171,00 barrels.

Yet it seems there are some small signs that Iran may try to restart talks and step back from the brink of war. Reports of supply cuts to Europe were denied yet in some ways the Iranians are acknowledging what already exist. We have seen many buyers of Iranian oil already stop buying, making it harder to sell their oil anyway. Still the Iranian premium in oil is still rising as the risk premium is probably close to $20 a barrel. In the meantime, we'll add to the mix a pipeline explosion in Syria and continuing pressure in Nigeria! Buckle Up!

Phil Flynn is senior energy analyst for PFGBest Research and a Fox Business Network contributor. He can be reached at (800) 935-6487 or at pflynn@pfgbest.com.

About the Author
Phil Flynn

Senior energy analyst at The PRICE Futures Group and a Fox Business Network contributor. He is one of the world's leading market analysts, providing individual investors, professional traders, and institutions with up-to-the-minute investment and risk management insight into global petroleum, gasoline, and energy markets. His precise and timely forecasts have come to be in great demand by industry and media worldwide and his impressive career goes back almost three decades, gaining attention with his market calls and energetic personality as writer of The Energy Report. You can contact Phil by phone at (888) 264-5665 or by email at pflynn@pricegroup.com. Learn even more on our website at www.pricegroup.com.

 

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