Oil and Gas Supply/Demand

[BuySellSideTrader2020]

I have a legit question, please answer this seriously.

Is the demand for Oil an independent variable from the demand for gasoline?

if yes then is the supply of gasoline dependent upon the supply for oil?

For the sakes, let us approach this from the global macro perspective and the use of WTI and/or Brent.

 

[SunTrader]

"Don't call me Shirley".

 

[Overnight]

I have a legit question, please answer this seriously.

Is the demand for Oil an independent variable from the demand for gasoline?

if yes then is the supply of gasoline dependent upon the supply for oil?

For the sakes, let us approach this from the global macro perspective and the use of WTI and/or Brent.

I cannot answer on the global perspective, but I wanted to relay to you an interesting phenomena I witnessed in Aug 2017, when Hurricane Harvey was entering the Gulf Of Mexico...

I naturally thought that CL and RB would both increase due to output reductions, but while RBOB prices rose significantly for a short while, WTI prices dropped significantly. I recall this being a very short-term phase, and the only logic I could assign it was that since refineries were all closing, that meant RB supply shortage. So RBOB went up. But CL went down, because with the refineries closed there was no immediate demand for it.

Over the longer term, I believe the two are closely correlated though.

As for the tit-for-tat approach?

Is the demand for Oil an independent variable from the demand for gasoline?

From an industry-supply side I'd say yes, because oil is used for a LOT more than just making gasoline.

if yes then is the supply of gasoline dependent upon the supply for oil?

Well, yeah, since you need oil to make gasoline.

I am just drawing logical conclusions here, and cannot take into account all the other variables because I don't know the industry.

 

[Robert Morse]

The end-user of the by-products of crude oil have no demand for "crude oil" because it is no more useful than raw plastic is to consumers that need plastic bags. The demand comes from refiners that breakdown the crude into usable products. Their demand comes from the refiners that create useable products for the end-user of the refined crude. The by-products are generally liquefied petroleum gas (LPG), gasoline, kerosene, jet fuel, diesel oil, and fuel oils. The refiners sell those to distributors that then deliver to the end-user. Supply-Demand for useful products determines what those distributors are willing to pay. Does this answer your question?

I have a legit question, please answer this seriously.

Is the demand for Oil an independent variable from the demand for gasoline?

if yes then is the supply of gasoline dependent upon the supply for oil?

For the sakes, let us approach this from the global macro perspective and the use of WTI and/or Brent.

 

[ajacobson]

In a narrow sense, it can be - ever see an empty gas station raising prices. No one but a true commercial can estimate or trade spot. Almost as much oil(sometimes more goes into jet fuel). With very little flying in and out of Asia over demand is weak.
So the answer is it depends. If cash we less opaque than it would be easier.

 

[BuySellSideTrader2020]

After doing some research this is what I found:
Gasoline prices tend to increase when the available supply of gasoline decreases relative to real or expected gasoline demand or consumption. Gasoline prices can change rapidly if something disrupts crude oil supplies, refinery operations, or gasoline pipeline deliveries. Even when crude oil prices are stable, gasoline prices fluctuate because of seasonal changes in demand and in gasoline specifications.