AAA expects Thanksgiving travel to increase
November 22, 2023
The news of the morning is that OPEC+ has decided to move their upcoming meeting from November 25-26 to November 30. This news has crude oil down over 3$ per barrel. This shows what we got in short covering yesterday and OPEC+ also gave no reason for the postponement.
Energy markets are pretty thin, and the trade volume is much lower than “normal.” As I have mentioned, because of this we have to be cautious to read too much into the price actions. The market seems to be pricing in some concerns that OPEC+ when they meet will roll over the current production cuts. This outlook was certainly disrupted this morning.
Reminder that our offices are closed on Thursday November 23 and Friday November 24 and there will be no forwarding contracts available on those days.
The API had crude oil up 9 million barrels, gasoline down 1.79 million and distillates down 3.51 million. If we see a big build like that in the DOE report today it will certainly weigh on prices.
The average estimates for today’s DOE inventory report from the Bloomberg survey is for crude inventories to be up 510,000 barrels, gasoline inventories down 745,000 barrel and distillate inventories down 862,000 barrels.
The average estimate for today’s propane inventory update is to see inventories draw down by 920,000 barrels.
US automaker Ford Motor Company is dramatically scaling back an electric vehicle battery plant under construction in Michigan as its EV business continues to lose billions of dollars.
US auto club, AAA is estimating the number of Americans traveling this Thanksgiving holiday 50 miles of more from home is expected to reach 55.37 million, up 2.3% from 54.01million who travelled in 2022.