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Current Surge in Global Gasoline Price
The onset of spring often signifies an increase in gas prices around the world. Behind this surge lies the highest Gasoline RBOB Futures level we've seen since last September. Various factors contribute to this, including refinery stoppages, seasonal changes, and the emerging reality of a growing global gasoline demand.
Global Demand Greater Than Predicted
It seems that the appetite for gasoline in the United States has exceeded even the most liberal forecasts. Fuel giant, Exxon Mobil, illustrates the global demand for gasoline as unparalleled, contradicting those who thought the electronic vehicle revolution would dampen it.
Electric Vehicles Not Curtailing Gasoline Demand
Despite significant efforts and resources being poured into promoting electric cars, this has surprisingly not dented the global demand for gasoline. Some even argue that this might be a good thing considering the production processes of these electric vehicles contribute to the release of greenhouse gases into the atmosphere.
Continued Strong Demand for Gasoline
Even with the pinch of climbing gasoline prices, demand doesn't seem to be faltering anytime soon, according to trend analysis. On a positive note, the Whiting, IN BP refinery is reportedly back online, but supply shortages remain rampant worldwide.
Global Supply Under Threat
World supply is expected to tighten further as a result of a series of drone strikes on Russian refineries, believed to be from Ukraine. In light of these supply chain interruptions and shrinking product supplies, the possibility of price spikes, increases, and the probability of a fuel shortage become increasingly real.
Natural Gas Prices and Gold Market
On another note, natural gas prices seem to be enjoying a revival with the onset of winter, although many producers will likely go out of business due to negative pricing in some basins. Gold, on the other hand, has seen a slight decline following its recent record-breaking performance.
