SunSirs: International Crude Oil Prices Rose on September 2, Providing a Boost to Related Energy Products

On September 2, international crude oil futures closed higher. The settlement price for the US WTI crude oil futures contract for October delivery rose by $0.79 (0.9%) to $91.01 per barrel. The settlement price for the Brent crude oil futures contract for November delivery increased by $0.98 (1.0%) to $95.63 per barrel.

With the settlement prices for US WTI (October contract) and Brent (November contract) rising by 0.9% and 1% respectively, the strengthening of overseas crude oil markets provided general bullish support for spot crude oil and related futures contracts, creating upward momentum for prices.

Crude oil is a key upstream raw material for asphalt; the rise in crude oil prices significantly bolstered the cost support for asphalt. Coupled with the fact that the main asphalt futures contract on the Shanghai Futures Exchange also closed higher on September 2, this provided general bullish support for both spot and futures prices of asphalt.

Gasoline is a downstream refined product of crude oil; rising crude oil prices drive up production costs for gasoline, offering generally bullish support for spot gasoline prices.

Diesel is also a downstream refined product of crude oil; rising crude oil prices increase production costs for diesel, providing generally bullish support for spot diesel prices.

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