HERE COMES THE GAS GLUT: Oil Prices Steady but Products Glut Looms.
There are signs that an increasing glut of refined products could begin to weigh on crude prices. The oversupplied products markets, especially gasoline, means refiners will pull back on crude purchases, especially as the autumn maintenance season is only two months away, the New-York-based bank Morgan Stanley said.
“The bottom line is that the gasoline market faces a nasty reckoning, as the consequences of the market’s rush to bid up summer gasoline values last winter are now becoming clear,” the London-based Energy Aspects said in a note.
In China, one of the largest consumers of oil, growing inventories of refined fuels is also jolting some investors, who expect the country’s oil demand to taper off in the coming months as domestic production of fuels, such as gasoline and diesel, outpaces demand.
Getting sub-$2 gasoline again would be nice.