Senate Stays in D.C. to Work Out Stimulus Deal
December 16, 2020
The API said that crude oil stocks were up 2 million barrels compared with analysts’ expectations for a 1.9 million decline according to the Reuters survey. Crude oil stocks at Cushing, Ok were down 165,000 barrels. Gasoline stocks were up 828,000 barrels and the estimates for today are for stocks to be up 1.6 million barrels. Distillates were up 4.8 million barrels and the outlook for today is for them to be up 886,000 barrels. This was a bearish report, but the market continues to look at the vaccine news and hold its ground or inch higher. Traders will now wait to see how the governments DOE inventory report come out today and see if any surprises there can derail the positive vaccine outlook.
Estimates for today’s propane inventory update are for stocks to decline by 2.1 million barrels. The export economics for propane remain strong and exports are a big piece of what could drive prices.
Demand in Asia has been strong, and traders are now seeing that as supportive to markets. Bloomberg reported that China’s oil refiners processed a record 14.26 million barrel per day in November, up by 55,000 bpd year on year, keeping refinery runs above the 14 million bpd mark for the 6th consecutive month. S&P Global Platts reports that India’s appetite for oil should emerge from the red and post positive growth in 2021.
Hope for another round of stimulus continues. Senate Majority Leader, Mitch McConnell said yesterday that the Senate would not leave Washington for the holidays until a coronavirus aid package is passed.
The International Energy Agency warned that the roll-out of vaccines this month to combat the coronavirus pandemic will not quickly reverse the destruction on global oil demand. The IEA revised down its estimates for oil demand this year by 50,000 bpd and for next year by 170,000 bpd, citing scarce jet fuel use as fewer people travel by air.