|Day's Range||1.6821 - 1.6900|
Iraq raised its domestic production of gasoil and gasoline in 2019, the Oil Ministry said in statement on Saturday. The statement said the increase was largely the result of moves to increase output from Iraq's refineries, some of which have been rebuilt after being damaged by militant groups. Iraq uses most of the fuel it produces for domestic consumption, the statement said.
(Bloomberg) -- Mexico is considering a ban on the use of cash for purchasing gasoline and to pay for tolls as a way to fight tax evasion and money laundering, according to people with direct knowledge of the discussions.The plan, which has been discussed between the banking industry and the government, hasn’t been fully approved. A final decision may not be taken until after the central bank rolls out its digital payments platform known as CoDi next month which is part of a broader government program to push more Mexicans into the banking system and cut down on cash, said the people who asked not to be named, since the plan isn’t public.Mexico is awash in cash from the informal economy of street merchants and the illicit drug trade. Cash is used for between 80% to 90% of transactions in Mexico, Finance Minister Arturo Herrera said in March, when he was still deputy minister. At a time of a slowing economy, the plan could also help widen Mexico’s tax base.Mexico’s Finance Ministry did not immediately respond to a request for comment. The country’s banking association declined to comment.In addition, the move will help identify gas stations that are buying stolen fuel by tracking their sales electronically, both people said. President Andres Manuel Lopez Obrador has made a crackdown on fuel theft from state-owned oil company Petroleos Mexicanos a cornerstone of his drive to root out widespread corruption.For banks, the plan to push for more cashless transactions -- albeit without fees -- could be a boon for expanding their client base and open opportunities to provide more Mexicans with cards, loans and mortgages. The CoDi system -- which relies on QR codes with mobile phones -- and a ban on gasoline and tolls, could increase digital payments tenfold, one of the people said.Only around two-fifths of Mexicans have bank accounts, World Bank data shows, and Mexico has the lowest tax take as a share of its economy among members of the Organization for Economic Co-operation and Development.AMLO, as the leftist president is known, surprised Mexico’s bankers by embracing a cashless strategy which his predecessors had previously shunned. The ambitious project gels with his anti-graft campaign as well as a wish to to achieve greater financial inclusion in remote parts of the country of 125 million. To be sure, challenges abound to weaning Mexicans off cash, including poor connectivity for both mobile networks and internet service outside of major urban areas.With the need to give consumers time to prepare for a cash ban on goods like gasoline and highway tolls, the enforcement of such a policy may take some time. Other areas that could be pushed into digital payments include public transportation, school tuition, electricity bills and passport fees, the people said.India instated an even broader cash ban in 2016 - one that prohibited high-denomination currency notes. While it didn’t weed out illicit cash use altogether, it did widen the country’s tax base and increase digital payments.(Updates with response from bank association in fourth paragraph.)To contact the reporters on this story: Michael O'Boyle in Mexico City at email@example.com;Nacha Cattan in Mexico City at firstname.lastname@example.orgTo contact the editors responsible for this story: Daniel Cancel at email@example.com, Richard RichtmyerFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
GBP/USD retreated from a one-week high yesterday and is nearing support from a rising trend channel. If the pair fails to hold here, it will trigger a bearish flag pattern.
The global energy market is comprised of 3-distinct groups. The producers search for energy which includes crude oil and natural gas. The consumer uses the end product that is created for them by the refiner. The refiner’s role in the process is very important and sometimes is lost when traders evaluate the energy sector.
Following the selloff at the onset of the week, US equities rebounded while Asian equities saw a mixed start to the day.
(Bloomberg) -- Raw materials are reeling after President Donald Trump threatened new tariffs on Chinese goods, dashing hopes that the two sides might soon negotiate an end to the trade war that’s sapping global growth and demand for commodities.The Bloomberg Commodity Spot Index fell 2.5% Thursday, the biggest one-day drop in more than a year, before most markets began to stabilize Friday. Thursday’s fall was led by oil’s biggest sell-off in four years. Hog and soybean futures also fell as Trump questioned Chinese promises to purchase more U.S. farm goods. Among metals, copper in London extended losses into Friday, while mining equities including Glencore Plc and BHP Group Plc slumped.Commodities have been held hostage to trade-war fluctuations over the past year as the two top economies slug it out. Trump escalated his fight with Beijing Thursday, saying 10% levies will now be imposed Sept. 1 on $300 billion of Chinese goods after a round of talks Wednesday ended without a breakthrough. The sell-off in energy and building goods indicates investors see an end to the truce Trump struck with President Xi Jinping in June.“We’ve been bearish on the expectation that the situation would continue to deteriorate,” Vivienne Lloyd, an industrial metals analyst at Macquarie, said by phone from London. “It’s become clear that there are structural difficulties in achieving a deal, because some of the American demands just run counter to the spirit of China.”Some of the Trump-inspired swings began to reverse themselves by Friday. Gold, which had risen to a six-year high on a renewed for havens, began to retreat, with spot prices losing as much as 1%. Brent crude bounced back, while still heading for a 2.4% weekly loss.As hopes for a deal fade, investors are left focusing on a contraction in manufacturing and heavy industry across many major economies. Copper -- with its close links to shifts in economic growth -- could have a few hundred dollars left to fall if it breaks below resistance levels at around $5,800 a ton that have held throughout the trade war, Lloyd said. It traded at $5,810 a ton in London on Friday.“In terms of the impact on metals, we see it as a spectrum, with copper at the worst end of it, given its sensitivity to macro conditions,” Lloyd said. “At the other end would be the bulk commodities, which are typically traded by people who are much closer to the underlying physical markets. The distinction between the two is going to be key."To contact the reporters on this story: Dan Murtaugh in Singapore at firstname.lastname@example.org;Mark Burton in London at email@example.comTo contact the editors responsible for this story: Lynn Thomasson at firstname.lastname@example.org, Dylan GriffithsFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Russian oil products are making their way to sanction-stained Venezuela, affording a reprieve for the Latin American nation as it battles persistent fuel shortages.
BP does not expect supply from additional biofuel capacity in Brazil - where it is combining its unit with U.S. grain trader Bunge's - to replace diesel and gasoline demand, BP's head of Alternative Energy, Dev Sanyal, told Reuters. Through the deal BP will increase its biofuel production to 22 million tonnes from 10 million tonnes a year, firmly focusing on Brazil as its biofuels production and consumption hub.
China just reported a drop in gasoline refining output this June. The drop in output comes as refining margins are under pressure due to faltering demand
Oil fell about 2.5% a barrel on Thursday, weighed down by weakness in U.S. equities markets and an expectation that crude output would rise in the Gulf of Mexico following last week's hurricane in the region. Prices were further weighed down by economic concerns as U.S. equities were on track for a third consecutive decline. U.S. offshore oil and gas production has continued to return to service since Hurricane Barry passed through the Gulf of Mexico last week, triggering platform evacuations and output cuts.
India's Bharat Petroleum Corp Ltd has bought gasoline for Kandla in a rare move to meet demand and plug a supply gap after cancelling an earlier purchase tender, industry sources said on Tuesday. BPCL bought 20,000 tonnes of 91.2-octane grade gasoline at a premium of about $9 a barrel to Singapore quotes on a cost-and-freight (C&F) basis. The fuel is of Euro IV-compliant grade and scheduled for July 18-22 arrival at Kandla port located in Gujarat state of western India.
Despite oil prices rising by over 15% in 2017, with a push to move electric vehicles into the fore, we set a record for gasoline demand, at time when we were supposed to be moving away from it. Over the last couple of years oil has been trading in roughly the same region, at about $50-60 a barrel, and in 2018, for example, about 142.86 billion gallons (or about 3.40 billion barrels 1 ) of finished motor gasoline were consumed in the United States, an average of about 391.40 million gallons (or 9.32 million barrels) per day. The San Mateo, California-based company took the fuel delivery service market by storm, entering the market in 2015 from its former headquarters in San Francisco and eventually scaling to carry gas to fleets and to individual consumer clients in northern and southern California and the Dallas-Fort Worth region in Texas. The startup sends roving refueling trucks to company parking lots to pump gas on-demand for fleets and employees, who are offered the service as a company perk.
Gasoline exports from Europe to the U.S. East Coast rose sharply in early July after a fire at a major refinery in Philadelphia left a supply shortage in the densely populated region. Philadelphia Energy Solutions' (PES) 335,000 barrel-per-day (bpd) oil refining complex, the largest and oldest on the U.S. East Coast, is set to permanently shut down after it was hit by a devastating fire on June 21. Benchmark U.S. gasoline refining margins have gained over 16% since the fire at the plant which supplies around 55,000 bpd of gasoline to the region, according to consultancy Energy Aspects.
Gasoline exports from Europe to the U.S. East Coast rose sharply in early July after a fire at a major refinery in Philadelphia left a supply shortage in the densely populated region. Philadelphia Energy Solutions' (PES) 335,000 barrel-per-day (bpd) oil refining complex, the largest and oldest on the U.S. East Coast, is set to permanently shut down after it was hit by a devestating fire on June 21.
Drivers will be dealing with higher gasoline prices at the pump as they prepare to travel for the Independence Day holiday this week.
Most corners of ETF investing have performed exceptionally well while a few areas are lagging. Below, we have highlighted the best and worst zones of the first half and their ETFs.
The shutdown at Philadelphia Energy Solutions could increase US oil inventories in the coming weeks. But at the same time, gasoline inventories might decline. The Philadelphia Energy Solutions refinery has a refining capacity of 335,000 barrels per day. On June 26, the United States Gasoline Fund (UGA), which follows gasoline prices, rose 4%.
U.S. oil prices climb sharply Wednesday after the U.S. government reported a weekly drop of nearly 13 million barrels in domestic crude stocks, while gasoline futures rally by 5% on news a planned refinery closure.
The largest and oldest refinery on the U.S. East Coast is set to be permanently closed after a series of explosions rocked processing units, sending gasoline futures soaring