Rumblings of $100 Oil Persist
September 13, 2023
The API called crude stocks up 1.174, Cushing crude stocks down 2.417, gasoline up 4.2, and distillates up 2.592.
Crude is trading higher this morning as supply concerns continue to see the bulls buying the market. Also helping to support prices was OPEC leaving their forecast for growth in global demand in 2023 and 2024 unchanged. They suggest that major economies are faring better than expected despite headwinds from higher rates and elevated inflation.
We are again starting to hear rumblings of $100 dollar oil. This is being driven by supply tightness and demand staying strong despite the economic challenges. But there are many that are very cautious of this as they believe that Saudi Arabia and Russia will not let prices get to out of hand as they do not want to damage China’s economy and their continued recovery.
The EIA in their Short Term Energy Outlook said it expects world oil demand in 2023 to increase by 1.81 million bpd to 100.97 million bpd and increase by 1.36 million bpd to 102.33 million bpd in 2024.
The outlook for today’s propane inventory report is for stocks to be up 1.38 million barrels.
The average estimates from the Bloomberg survey for today’s DOE inventory update are crude down 1.994, gasoline down 536,000 and distillates up 611,000.