In March, Pertamina, an Indonesian state-owned refiner, would increase its gasoline import before the Islamic fasting month of Ramadan.
Gasoline RBOB futures for March delivery went up by 0.45% to $2.51 per gallon on February 16’s Asian afternoon session.
Compared to previous years, the volumes in Indonesia that will be brought in would be lower. This week, the country announced its forecasted volume levels.
According to gasoline traders, the March shipment with term nominations would be around 338,500.00 barrels per day to 355,000.00 bpd. Dealers added that the anticipated output would be between 8.50 to 9.00 million barrels of petroleum liquid in February.
Moreover, gasoline volumes for March are greater than the sizes in January and February. However, they are lower than the expected stockpiling efforts that would increase during the month. The goal is to meet the peak driving demand during Ramadan, which begins on March 22 and ends on April 20.
The nation imported around 400,000.00 bpd, 300.000.00 bpd, 365,000 bpd, and 380,000 bpd of gasoline. These were brought in a month before Ramadan in 2019, 2020, 2021, and 2022 respectively.
Furthermore, shipment volumes have been capped due to a slow domestic demand against the 2022 fuel price hike. The slowdown in demand caused a bearish impact on purchases for Asia-Pacific’s most significant buyer. It had to postpone cargoes for the second half of the 2022 delivery to 2023.
California Gasoline Industry Aims at SB1137
The gasoline industry is targeting California’s setbacks law, Senate Bill 1137. It bans new and reworked oil wells within 3,200 feet of schools, homes, and hospitals, which Governor Gavin Newsom signed.
He said that it was not enough for major oil companies to hike gas prices. Now, they want to drill near schools and daycares. He mentioned that the companies would risk others’ health rather than lose money.
Moreover, the state agencies which oversee oil and gas drilling suspended the law pending the vote on the poll on November 05, 2024.
In response to high gasoline prices, Newsom arranged a session to impose financial penalties on the companies. The affected entities are those who established intentional price gouging.
