Signals Point to Tightening of Supply
June 3, 2021
The API had crude oil supplies down 5.36 million barrels, gasoline supplies up 2.5 million barrels, and distillates up 1.56 million barrels.
The average estimates from the Bloomberg survey for today’s DOE inventory update are crude down 2.341 million barrels, gasoline down 1.710 million and distillates down 1.980 million.
Average estimates for today’s propane inventory update is to see a build of 1.205 million barrels. The five year average for this reporting week is a 2.970 million barrel build.
The stories are much the same. No Iran deal, OPEC+ gradually easing cuts, economic recovery and with it strong energy demand, all these things call for tighter supplies going forward. Energy prices are at a level not seen in almost two years. The bears have some work to do and will need to get this market working lower if they hope to see prices ease back. All the outlooks and a lot of the news are bullish right now and if the market cannot break out higher then it very likely settles into a range.
A reported fire at an Iranian refinery also added to the upside momentum yesterday.
Initial jobless claims estimate 390,000. Actual 385,000
Continuing claims estimates 27,000 at 3,615,000. Actual 3,771,000.