Trump rescinds Chevron’s license for Venezuelan crude
February 27, 2025
Propane inventories were down 3.722 million barrels, putting total stocks at 51.456 million. Last year stocks were at 51.181, and the five-year rolling average is 51.326. Midwest inventories were down 1.431 million barrels putting total Midwest stocks at 11.122 million barrels and last year there were 12.553 and the five-year rolling average is 12.088. Gulf Coast stocks were down 2.802 million putting total Gulf Coast stocks at 32.932 and last year they were 35.734 million barrels, and the five-year rolling average is 31.955 million. The cold temperatures created demand, and it was up 586,000 bpd to a total of 1.918 million bpd. Exports were down, helping to support prices. For the first eight weeks of 2025 propane inventories have declined a total of 33.5 million barrels using weekly EIA data. That is a very strong number and maybe the biggest decline in those eight weeks. For the next month and a half, we are in for the weather to be up and down. We will see a warmup and they cool down, then another warmup and then a cool down. Price should hold steady with some reaction to the weather and the headline news impacting crude oil.
The DOE inventory update called crude oil supplies down 2.33 million barrels, gasoline up 370,000, and distillates up 3.91 million. Total US crude oil currently at 430.16 last year there were 447.163 and the 3-year average is 446.932.
Gasoline inventories were up 369,000 barrels, putting total stocks at 248.271 and last year there were 244.205 and the three-year average is 243.136.
Distillate supplies were up 3.91 million barrels to a total of 120.472 and last year there were 121.141, and the three-year average is 120.786.
President Trump rescinded Chevron’s license to export Venezuelan crude oil. This if offering support to prices and crude is up over a dollar per barrel but still below the psychological $70 dollar level currently. This is a political move because Venezuela is not conducting free and fair elections. President Trump did this in his first term in office and it just provides more uncertainty and confusion around these energy markets.