China Eyes Pushing Iranian Partnership to “New Level”
April 21, 2021
The API had crude oil stocks up 436,000 barrels, Cushing crude stocks down 1.3 million, gasoline stocks down 1.6 million and distillates up 655,000.
The average estimated for today’s DOE inventory update from the Bloomberg survey. Crude down 3.266 million, gasoline up 947,000 and distillates down 1.278 million.
The European Union, which is chairing negotiations in Vienna, said talks between Iran and world powers, as well as, indirectly the Unites States, will continue next week. Iran’s President said negotiations on reviving the 2015 nuclear deal were 60% to 70% complete.
According to a report from JBC Energy, global fuel demand is set to increase this summer, largely driven by gains in gasoline and jet fuel/kerosene. Core demand seen increasing by more than 4 million bpd August vs. April. Gasoline is seen increasing by 2 million bpd and jet fuel and kerosene is seen increasing by 1.6 million bpd.
China’s President Xi Jinping told Saudi Crown Price Mohammed bin Salman on Tuesday that Beijing was willing to push its strategic partnership with Riyadh “to a new level”. In a phone call, the two leaders discussed increasing cooperation in energy, trade, and technology.
Two OPEC+ sources stated the OPEC+ achieved a compliance level with its agreed oil production cuts of 113% in March, unchanged from levels in February.
India reported a record death toll from COVID-19 of more than 2,000 deaths and Japan is moving toward a state of emergency. These concern about COVID-19 cases outside the US has put a damper on the global outlook for demand. The outlook in the US is still that the second half of the year is going to bring a strong rebound on the energy demand front, as well as, other areas. This optimism will continue to push these market unless some contrary event materializes to dampen the enthusiasm, of we get to the second half of the year and demand does not show up. For now, more vaccines and stimulus continue to create a strong outlook.
The average estimates for today’s propane inventory update is to see the stocks increase by 500, 000 barrels.