Bank of England Raises Interest Rates Adding Bearish Sentiment to Market
June 23, 2023
The DOE inventory report had crude oil inventories down 3.83 million barrels, gasoline inventoried up 480,000 barrels and distillates up 430,000 barrels. Refinery runs were down 0.60% to 93.10% of capacity.
Total crude oil inventories are at 463.293 million barrels and last year they were 418.328 million a 44.965 million barrels surplus versus last year. Gasoline inventories are now at 221.402 and last year there were 218.963 million a 2.439 million barrel surplus year over year. Distillates inventories are now at 114.288 and last year there were 109.842 million and that is a 4.446 million barrel surplus year or year.
Propane inventories were up 1.491 million barrels putting total stocks at 76.952 million barrels. Last year there were 53.953 million barrels, 22.999 million more than last year. Midwest stocks were up 191,000 barrels putting total Midwest inventories at 19.189 and last year there were 15.808 which is 3.381 million more than last year. Gulf Coast propane inventories were up 1.640 million barrels putting total stock at 48.267 million barrels and last year there were 30.215, 18.052 million more barrels than las year.
The refined fuels product inventory update was bullish overall, but the latest sentiment is negative and putting selling pressure on prices. The Bank of England raising rates again and higher than the market expected was negative for the economic outlook.
The EIA weekly report still shows good demand for gasoline and diesel. Implied demand for gas was 10.233 million bpd and distillates were 5.159 million bpd. Demand is still good, and supplies are tight, which is all supportive to prices but for now the negative economic outlook is impacting prices and pushing them lower. In the big picture these energy markets are still stuck in trading ranges and congested. These markets are essentially buying time as there is no conviction trying to figure out what the next big move will be.