Fellow Mark Finley says analysts have been bracing for Russia to cut production in response to Western sanctions on Russian energy commodities. “But that hasn’t been the case so far,” Finley said. “Russia has been able to find new markets for its oil.”
U.S. gasoline demand has peaked, with further declines in demand forecast for this year and next. The milestone will have "significant implications for consumers, inflation [and] politics," said fellow Mark Finley. "All in all, a big deal — over time."
“Previously the mantra was ‘We’re not here to manage markets, we’re here to manage physical shortages,'" said energy fellow Mark Finley about Biden's move to tap the Strategic Petroleum Reserve to reduce gas prices.
Following a deadly refinery fire in Ohio, Midwest gasoline stockpiles are close to record lows. Energy fellow Mark Finley told Bloomberg that the resulting price increases have an “outsized economic impact beyond their direct hit to gasoline demand.”
Although recessionary forces indicate diesel demand will be lower this winter, heating demand might offset this slowdown in the U.S. Northeast, said energy fellow Mark Finley.