Conflict in the Middle East Ensnares Energy Exports
March 14, 2024
The DOE inventory report had crude oil stocks down 1.54 million barrels to a total of 446.994 million and last year there were 480.063 million a 33.069 million barrels deficit year over year.
Gasoline stocks were down 5.66 million barrels to a total of 234.083 million and last year there were 235.997 million a 1.914 million barrel deficit year over year.
Distillate stocks were up 890,000 barrels putting total stocks at 117.898 and last year there were 119.715 a 1.817 million barrel deficit year over year.
Implied gasoline demand was strong at 10.13 million bpd, up 25,000 bpd from last week. Distillate demand was ok at 4.606 million bpd, up 52,000 bpd from the last week.
Propane inventories built 678,000 barrels putting total inventories at 51.855 million and last year there were 60.970 9 a 1.15 million barrel deficit year over year. Midwest stocks were up 495,000 barrels putting total Midwest stocks at 12.227 million and last year there were 13.509 million a 787,000 barrel deficit year over year. Gulf Coast stocks were up 621,000 barrels putting total Gulf Coast stocks at 31.093 million and last year there were 38.397 million a 7.304 million barrel deficit year over year.
Conflict in the Middle East continues to ensnare the region’s energy exports. Oil tankers forced on longer routes to avoid Houthi attacks in the Red Sea have created the biggest pileup of inventories on the water since the pandemic, according to the IEA.
The IEA also raised the demand growth forecast which offers some support to prices. The IEA in general is more pessimistic about the world economies which has kept its outlooks more conservative the OPECs’.