World Bank Cuts Global Growth Forecast
June 8, 2022
The API report came out and called crude oil stocks up 1.8 million barrels, gasoline stocks up 1.8 million barrels and distillate stocks up 3.4 million barrels.
The average estimates for today’s DOE inventory report from the Bloomberg survey is calling for crude stocks to show a draw of 2.83 million barrels, gasoline up 820,000 barrels and distillates up 680,000 barrels.
The World Bank cut its growth forecast for the global economy this year to 2.9% from a January prediction of 4.1% and April’s 3.2% and warned that several years of above-average inflation and below-average growth lie ahead.
The US State Department is allowing the shipment of Venezuelan crude to Europe to offset the loss of Russian supply. Venezuela has been aggressive in trying to take market shares from Russia.
The energy executive director at Mizuho said that several numbers in the EIA inventory report are near historical lows including Cushing, Ok crude oil stocks and the Strategic Petroleum Reserve.
The outlook for the propane inventory update today is for stocks to increase by 2.498 million barrels. This would be another good build and increase total stocks and ease some of the supply concerns. It would also put some downside pressure on prices but with crude oil continuing to move higher or at least trading flat propane has not been able to move much lower.
Energy prices also continue to get support from easing COVID restriction in China.
Norwegian oil workers have threatened to strike, and that news adds a little support to crude prices.
AAA reported another record price at the pumps for both gasoline and diesel. AAA put regular unleaded at $4.955 and diesel at $5.719 per gallon.