CPI Drops 0.1% in December
January 12, 2023
The propane inventory report showed a draw to inventories of 2.094 million barrels putting total inventories at 78.587 million. Midwest inventories were down 1.055 million putting total Midwest inventories at 22.681 million. Gulf Coast inventories were down 542,000 barrel putting Gulf Coast inventories at 45.251 million barrels.
The DOE report had crude stocks up 18.96 million barrels a massive build putting total crude stock at 413.90 million. Gasoline stocks were up 4.11 million putting total gasoline inventories at 219.09 million. Distillate stocks were down 1.07 million putting total distillate stocks at 118.81 million barrels. Refinery runs were up 4.5% to 84.10% of capacity.
The 18.96 million barrel build in crude was the third largest weekly crude build in history.
In 2023, investments in energy and natural resources will be on an upward trend, with overall spending on supply across oil and gas, power, renewables, metals, and mining forecast to increase by 5% to $1.1 trillion.
Just out this morning the consumer price index fell 0.1% in December meeting expectations, for the biggest drop since April 2020. Excluding food and energy, core CPI rose 0.3%, also in line with estimates. On an annual basis, headline CPI rose 6.5% (year over year) while core increased 5.7%( year over year). The biggest reason for the easing in inflation came from a sharp drop in gasoline prices, which are now lower on a year-over-year basis. From CNBC.
The energy markets are mixed after the release of the data with gas and crude higher and diesel lower.
The EU continues to import large amounts of diesel prior to the February 5th ban of Russian petroleum products. Asian distillates are showing signs of strength as prompt backwardation of Singapore distillates is the steepest in over 2 weeks.