Phillips 66 Crude Oil Bulletin (2024)

FAQs

What is the oil price outlook for 2024? ›

Despite the cut to the average annual price forecasts, the agency expects Brent futures to rise in the months ahead and range between $85 and $90 by the end of the year, largely on production cuts by the OPEC+ group pushing inventories lower.

We expect the Brent crude oil spot price will increase from its current level below $80/b to average $85/b for the remainder of 2024 and $89/b in the first quarter of 2025 (1Q25). The main source of this upward price pressure is falling global oil inventories resulting from OPEC+ production cuts.

Phillips 66 safely and reliably operates and/or owns more than 72,000 miles of pipeline throughout the United States. Pipelines ensure domestic energy can safely and reliably be delivered to refineries, manufacturers and ultimately to consumers in various forms. Review an interactive map of our Midstream assets HERE.

One symbol of infatuation with the new highway is the Phillips 66 gasoline trade name. Introduced in 1927, the name was inspired by a test drive at 66 miles per hour on a stretch of Route 66 in Oklahoma. The Phillips 66 sign, unveiled in 1930, combined the trade name with the shape of a US highway route marker.

Forecast overview. Crude oil prices. Although crude oil prices have fallen recently, we continue to expect crude oil prices will rise in the second half of 2024 (2H24). The Brent crude oil spot price ended July at $81 per barrel (b), compared with an average for the month of $85/b.

A Bloomberg Consensus included in the report forecast that the Brent price will average $84 per barrel this year, $80 per barrel next year, $79 per barrel in 2026, $73 per barrel in 2027, and $72 per barrel in 2028. BMI is a contributor to the Bloomberg Consensus, the report highlighted.

The average price of heating oil in the United States in the winter of 2022/23 is expected to reach 4.45 U.S. dollars per gallon. Energy prices are expected to see a significant increase this winter, following an energy supply shortage of fossil fuels such as natural gas and coal in Europe and Asia.

Believe it or not, the day of the week on which you purchase the fuel oil can also influence the price you pay. Prices are known to be higher towards the end of the week (especially on the weekend) and cheaper at the start of the week. All-in-all, there really isn't a “best” time of year to buy heating oil.

The latest round of layoffs will affect less than 1% of the company's employees across several locations. Phillips 66 had around 13,700 employees as of 2023. Activist investor Elliott Investment Management took a $1 billion stake in Phillip 66 in November and called for the refiner to improve its oil refining business.

What is the longest oil pipeline in the US? ›

The Colonial Pipeline is the largest pipeline system for refined oil products in the U.S. The pipeline – consisting of three tubes – is 5,500 miles (8,850 km) long and can carry 3 million barrels of fuel per day between Texas and New York.

With a diameter of 142cm, Yamal-Europe is considered the world's widest pipeline, able to carry 33 billion cubic metres of natural gas through 14 compressor stations. The majority of the pipeline, which runs through Russia, is owned by national energy giant Gazprom.

In 2013 California Attorney General Kamala Harris sued ConocoPhillips and Phillips 66 for failing to properly inspect and maintain underground tanks used to store gasoline at more than 500 service stations in the state.

Chevron Phillips Chemical (CPChem) is a petrochemical company jointly owned by Chevron Corporation and Phillips 66. The company was formed July 1, 2000, by merging the chemicals operations of both Chevron Corporation and Phillips Petroleum Company.

The company is engaged in refining, transporting, and marketing natural gas liquids (NGL) petrochemicals.

Total oil supply is now forecast at an average of 103 million barrels a day this year and 104.8 million barrels a day in 2025, higher than the IEA's previous estimates of 102.9 million barrels a day and 104.7 million barrels a day, respectively.

Oil prices are forecast to trade between $70 and $100 a barrel in 2024. The price of a barrel of oil is likely to trade between $70 and $100 for most of 2024, according to Asset & Wealth Management Investment Strategy Group (ISG) at Goldman Sachs.

We project overall PCE inflation to average 2.4% in 2024 and 1.8% over 2025 to 2028—just below the Fed's 2% target. Supply chain improvements have yet to be fully reflected in inflation numbers.

OPEC (Organization of the Petroleum Exporting Countries) has announced a downward revision of its global oil demand forecasts for 2024. According to the new estimates, demand should reach 104.32 million barrels per day (mb/d), a decrease of 135,000 barrels per day compared with the July forecast.