Markets Sell Off Over Fear of Viral Spread
February 17, 2020
The DOE inventory report called crude stocks up 450,000 barrels and the stocks at Cushing, Ok were up 910,000 barrels. Gasoline stocks were down 2.69 million barrels and distillates were down 2.12 million barrels. US production stayed strong at 13 million bpd.
The news of the coronavirus spreading continues and as it does the markets continue to sell off. Concerns grow of demand destruction and the negative impact to economies around the world push energy markets lower. The virus seems like all I have written about but as you know it is the biggest story in the news and the major factor now impacting all markets. It continues to have so many unknowns at this point and markets do not like uncertainty.
Goldman Sachs’ equity research cut its 2020 oil demand growth forecast to 600,000 bpd from 1.2 million bpd and lowered its Brent price forecast to $60 per barrel from a previous estimate of $63 per barrel. It anticipates 100,000 bpd of quarterly US oil growth on average, with the fourth quarter increasing by 300,000 bpd quarter on quarter.
The propane inventory report called total stocks down 688,000 barrels. The Midwest stocks were down 1.093 million barrels and the Gulf Coast stocks were up 930,000 barrels. Total stocks of propane are at 73.572 million barrels 20.162 million more barrels than last year at this time. Midwest stocks are at 14.304 million barrels 1.939 million more barrels than last year at this time. The Gulf Coast stocks are at 52.460 million barrels 17.793 million more than last year.