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Released November 15, 2024 | SUGAR LAND
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Written by Daniel Graeber for Industrial Info Resources (Sugar Land, Texas)--The resumption of operations at BP's (NYSE:BP) (London, England) Whiting oil refinery on the shores of Lake Michigan will only add to the relief spilling down to the consumer level by way of lower gasoline prices, data show.
It was a busy year for refinery maintenance, but moderation in the broader commodities market kept a lid on retail prices for much of the year. Among the largest facilities shuttered for maintenance was BP's refinery in Whiting, Indiana, which boasts a processing capacity of 430,000 barrels per day (BBL/d). Subscribers to Industrial Info's Global Market Intelligence (GMI) Refining Plant Database can click here for the plant profile.
Crude oil throughput was cut by 250,000 BBL/d as the facility's largest distillation unit was taken offline in September. Elsewhere in PADD 2, the petroleum district covering the Great Lakes and Midwest regions, Marathon Petroleum Corporation (NYSE:MPC) (Findlay, Ohio) started a 42-day turnaround at its Detroit Refinery on September 12. More than half of the 135,000 BBL/d in processing was sidelined during the maintenance period.
Compounding matters is a months-long strike among the members of the Teamsters labor union employed at Marathon's refinery. Nearly all of the 275 workers there are picketing over pay and safety factors. Subscribers can learn more by viewing the plant profile.
Those issues would be expected to drive the retail price for gasoline higher, though it's been something of a moderate year for the consumer at that end. Retail prices in PADD 2 lingered in the upper $3-per-gallon range through early summer, reaching $4 on average at the end of June, but markets have moderated since.
As of Monday, the latest data point from the U.S. Energy Information Administration (EIA), PADD 2 was posting a regional average of $2.87 per gallon. The energy arm of Industrial Info, meanwhile, finds that Whiting is ramping back up and should be running near peak capacity by Friday, a few days ahead of schedule. That would only add to the relief for the consumer.
Supply-side factors are indeed influential. But what the consumer sees at the pump is largely a reflection of crude oil prices, which account for about half of the retail price of gasoline. The rest is from taxes, transportation and other costs.
On Wednesday, West Texas Intermediate (WTI), the U.S. benchmark for the price of oil, was trading at around $68 per barrel, compared with $76 per barrel at this time in October. WTI traded as high as $87 per barrel this year.
Price moderation is a reflection of lackluster demand due in part to inflationary pressures. Renewed headwinds for the price of oil, meanwhile, stem largely from concerns that the steep tariffs proposed by U.S. President-elect Donald Trump would sharply curtail economic growth.
Pre-election estimates from the EIA show retail gasoline prices should average $3.30 per gallon this year, a 6% decline from 2023. Prices could drop another 3% by next year, according to the October forecast. IIR may have revisions later in the week when the EIA releases its monthly report for November.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
It was a busy year for refinery maintenance, but moderation in the broader commodities market kept a lid on retail prices for much of the year. Among the largest facilities shuttered for maintenance was BP's refinery in Whiting, Indiana, which boasts a processing capacity of 430,000 barrels per day (BBL/d). Subscribers to Industrial Info's Global Market Intelligence (GMI) Refining Plant Database can click here for the plant profile.
Crude oil throughput was cut by 250,000 BBL/d as the facility's largest distillation unit was taken offline in September. Elsewhere in PADD 2, the petroleum district covering the Great Lakes and Midwest regions, Marathon Petroleum Corporation (NYSE:MPC) (Findlay, Ohio) started a 42-day turnaround at its Detroit Refinery on September 12. More than half of the 135,000 BBL/d in processing was sidelined during the maintenance period.
Compounding matters is a months-long strike among the members of the Teamsters labor union employed at Marathon's refinery. Nearly all of the 275 workers there are picketing over pay and safety factors. Subscribers can learn more by viewing the plant profile.
Those issues would be expected to drive the retail price for gasoline higher, though it's been something of a moderate year for the consumer at that end. Retail prices in PADD 2 lingered in the upper $3-per-gallon range through early summer, reaching $4 on average at the end of June, but markets have moderated since.
As of Monday, the latest data point from the U.S. Energy Information Administration (EIA), PADD 2 was posting a regional average of $2.87 per gallon. The energy arm of Industrial Info, meanwhile, finds that Whiting is ramping back up and should be running near peak capacity by Friday, a few days ahead of schedule. That would only add to the relief for the consumer.
Supply-side factors are indeed influential. But what the consumer sees at the pump is largely a reflection of crude oil prices, which account for about half of the retail price of gasoline. The rest is from taxes, transportation and other costs.
On Wednesday, West Texas Intermediate (WTI), the U.S. benchmark for the price of oil, was trading at around $68 per barrel, compared with $76 per barrel at this time in October. WTI traded as high as $87 per barrel this year.
Price moderation is a reflection of lackluster demand due in part to inflationary pressures. Renewed headwinds for the price of oil, meanwhile, stem largely from concerns that the steep tariffs proposed by U.S. President-elect Donald Trump would sharply curtail economic growth.
Pre-election estimates from the EIA show retail gasoline prices should average $3.30 per gallon this year, a 6% decline from 2023. Prices could drop another 3% by next year, according to the October forecast. IIR may have revisions later in the week when the EIA releases its monthly report for November.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
