US Energy Secretary Granholm Says SPR Replenishment Could Happen Soon
May 12, 2023
OPEC raised its forecast for Chinese oil demand growth this year but left its global projection steady, citing potential downside risks such as the US debt ceiling.
US producer prices rebounded modestly in April, leading to the smallest annual increase in producer inflation in more than two years, further evidence that inflation pressures were subsiding. However, they are still high and raise the concern of interest rate staying high.
Initial jobless claims came in at 264,000. That is a 19 week high. Expectations were 245,000 and the previous was 242,000.
US Energy Secretary Jennifer Granholm told lawmakers on Thursday her department could start repurchasing oil for the SPR after completing a congressionally mandated sale next month. The mandated sale of 26 million barrels will be completed in June, and it’s at that point where we will flip the switch and then seek to purchase, Granholm told lawmakers in a hearing in the US House of Representatives. Do we believe her this time, as we have heard this before? This might just be enough to keep the imaginary floor around $70 dollars on WTI crude oil for now.
Shares of PacWest Bancorp were down 23% after the Los-Angeles-based lender said its deposits declined and that it had posted more collateral to the US Federal Reserve to boost its liquidity.
Diesel inventories had a big stock draw this past week and stocks are higher than last year. But other than the East Coast, diesel inventories are tighter than last year. The Midwest has seen some volatile basis moves as a result of the low levels of inventory and current good demand.