Energy Report: Trillions Of Reasons

S&P Global Platts reports that crude throughputs at China's independent refineries in eastern Shandong province fell 1.3% month on month to 2.38 million b/d -- or 10.05 million mt -- in May, marking a 14-month low amid heavy maintenance despite refining margins have risen, according to data from local energy information provider JLC June 9. Regardless, China needs oil and is already feeling the impact of skyrocketing commodity prices. Get ready for more support from self-imposed "peak oil" production.

The Wall Street Journal reports Royal Dutch Shell PLC said it would accelerate its efforts to cut its carbon emissions in the wake of a Dutch court ruling last month ordering the oil giant to take more drastic action. In a post on LinkedIn on Wednesday, Chief Executive Ben van Beurden said Shell disagreed with the ruling and still expected to appeal the court’s order to curb emissions by 45% by 2030, but would nonetheless rise to the challenge of doing more. “Now we will seek ways to reduce emissions even further in a way that remains purposeful and profitable. That is likely to mean taking some bold but measured steps over the coming years,” he said.

In February, Shell set out plans to gradually reduce its oil output and expand in areas including electricity and biofuels. Other big oil companies have also pledged to reduce their dependence on fossil fuels and invest more in low-carbon energy amid growing pressure from activists, investors, and governments. Good luck with that and another reason why the globe is headed toward an oil price shock.

The Energy Information Administration is predicting that gasoline prices will moderate and fall. I do not agree.

The EIA reports on the 2021 April–September summer driving season, "we forecast U.S. regular gasoline retail prices will average $2.92 per gallon (gal), up from an average of $2.07/gal last summer. The higher forecast gasoline prices reflect higher crude oil prices and higher wholesale gasoline margins. Wholesale gasoline margins have risen as a result of relatively low inventories and rising gasoline demand. Margins also temporarily widened because of outages on the Colonial Pipeline.

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