Recently in Oil fundamentals Category

February is shaping up nicely for US Midwest refiners, who are enjoying robust margins courtesy of another Brent/WTI spread blowout.

The Midwest WTI cracking margin averaged $21.82/barrel the first six business days of the month, up from a January average of $15.17/b, according to Platts data and Turner, Mason & Co. yield formulas.

It's the Lunar New Year in China, which marks the start of the zodiac Year of the Dragon. And 2012 will be another year that the world will again focus on China and actions to be taken by world's second largest oil consumer.

So given the importance of the number eight in Chinese culture, here are eight areas of focus for China's energy demand for 2012.

On January 19, the NYMEX crude-to-gas futures contract ratio hit an all-time, 22-year high of 43-to-1, tightening to 36-to-1 January 25.

Here's the question: Who cares anymore?

The numbers are in, and the rate of Chinese oil demand growth slowed considerably in 2011, falling to almost zero growth by the end of the year.

Platts' monthly survey of Chinese oil demand for December also gave us the opportunity to add up the figures for the entire year. While the country continues to set demand records virtually every month, by December that rate of growth compared to the prior year had slid to less than 1 percent.

You can read all about the numbers here.

Another week has gone by with relatively little movement in the headline price of oil, but don't let that fool you into thinking the market is calm. It just doesn't know whether to focus on the never-ending gloomy economic news from Europe or take its cue from the increasing fundamental tightness in the market and the risk of supply interruptions arising from the increasingly heated standoff between Iran and major Western powers.