RE:U.S. Gulf Coast Heavy Crude Prices Firm As Supplies Tightenheavy crude also yield more asphaltene used in repaving and repair roads ripped up by the EVs, LOL.
EV chew up tire 4-5x faster than ICE cars and oil is need to make tires (synthetic rubber) as natural rubber is harder to come by these days. EVs need oil, period.
We need about five gallons of oil to produce the synthetic rubbers required for a single tire. The whole tire manufacturing process that follows requires two additional gallons of oil. Bigger truck tires require average 22 gallons of oil. lifeisgood1010 wrote: U.S. Gulf Coast Heavy Crude Oil Prices Firm As Supplies Tighten
Prices for heavier crude oil along the U.S. Gulf Coast have recently climbed, trading at a rare near-par with lighter oil. This development signals supply tightness and could contribute to rising gasoline prices. Refineries along the Gulf Coast, which account for more than 55% of total U.S. refining capacity, are optimized to process medium and heavy crudes. These heavier crudes yield more diesel and jet fuel compared to lighter oil. Typically, heavier crudes are cheaper due to their dirtier nature and higher processing costs.
Several factors are pushing up heavy crude prices:
- Falling Oil Exports from Mexico: Reduced oil exports from Mexico are impacting supply.
- Potential Sanctions on Venezuelan Crude: The possibility of resuming sanctions on Venezuelan crude adds to supply concerns.
- Canadian Pipeline Startup: The imminent startup of a Canadian pipeline is expected to influence prices.
- OPEC+ Output Cuts: Ongoing output cuts by the Organization of the Petroleum Exporting Countries and allies (OPEC+) are affecting global supply.
In summary, the dynamics of heavy crude oil prices reflect a complex interplay of geopolitical factors, production adjustments, and market conditions.