Energy Prices Look to Rebound After Yesterday’s Selloff
May 2, 2024
The DOE inventory report had crude oil stocks up a big 7.27 million barrels which was more than expected and it sent the market down. Gasoline inventories were up 340,000 barrels and distillates were down 730,000 barrels.
Total US crude oil inventories are now at 460.890 million barrels and last year total stocks were 459.633. This puts total stocks at 1.257 more than last year. Gasoline total stocks are now at 227.087 and last year there were 222.878 so there is a 4.209 surplus compared to last year. Distillates total stocks are now at 115.850 and last year there were 110.323 million, so we have 5.527 million more barrels than last year.
Propane inventories were up 247,000 barrels putting total stocks at 56.922 and last year there were 58.292 million which puts current levels at a 1.370 million barrel deficit. Midwest stocks were up 578,000 barrels putting total Midwest stocks at 13.962 million and last year there were 12.971 putting total stocks 991,000 barrel above last year. Gulf Coast stocks were down 1.172 million putting total Gulf Coast stocks at 34.459 million barrels and last year there were 37.919 million, so supplies are currently 3.460 million less than last year. Despite the smaller build to inventories than expected the fact the crude oil was done over two dollars put the selling pressure on propane.
The US ISM manufacturing index for April 2024 fell to a reading of 49.2 into contraction below 50.
ADP reported that private payrolls rose by 192,000 in April 2024, which was much higher than the 175,000 new jobs expected.
Energy prices are trying to rebound after yesterday’s big sell off but so far, the rally is minimal.