Biden Considers Options to Lower Gas Prices
October 17, 2022
US commercial crude oil inventories(excluding those in the SPR) increased 9.9 million barrels week over week to 439.1 million barrels and are now 1% below the five-year average.
Total motor gasoline inventories increased by 2 million barrels week over week and are 8% below the five-year average.
Distillate fuel inventories decreased by 4.9 million barrels week over week and are 23% below the five-year average.
From Reuters: US distillate stocks are down to 106 million barrels, the lowest seasonal level since the government began keeping data in 1982, and the EU distillate inventories are 360 million barrels, the lowest level since 2004.
Propane inventories increased by 1.1 million barrels week over week and are 1% above the five-year average.
The Baker Hughes Rig Count had oil rigs up 8 to a total of 610 and last year at this time total oil rigs were at 445.
All OPEC+ members came out to support Saudi Arabia and throw water on the US’s narrative there was coercion by Saudi Arabia to make the production cut. All members said it was purely economics that drove the decision. This may or may not be true but that fact that all members defended SA and pushed back against the US is again another strain to the US and Saudi relations.
President Biden has said he will announce more action to lower gas prices. The market is waiting, but most think he will release more SPR barrels. The other possibility is an export ban.