Oil May Rise On Concern Demand May Outpace Supply

Crude oil prices are more likely to rise than fall next week on concern that refineries can’t keep pace with growing demand for diesel, heating oil and other fuels, a Bloomberg survey showed.

Nineteen of 44 analysts and strategists surveyed by Bloomberg, or 43 percent, said oil prices will rise next week. Seventeen, or 39 percent, said they will decline, and eight forecast little change.

U.S. refiners typically boost production of heating fuel in the second half before demand peaks in winter. Supplies of distillate fuels, which include heating oil and diesel, were 2.8 percent below the five-year average last week, according to the Energy Department. Rising demand and a lack of spare processing capacity helped oil prices rebound 16 percent since May 20.
Bloomberg