Biden weighs heavier sanctions on Russian oil
December 11, 2024
The API report called crude stocks up 499,000 barrels, gasoline inventories up 2.852 barrels, and distillates up 2.452.
The average estimates for the DOE report today are crude down 861,000, gasoline inventories are estimated to up 510,000, and distillates are estimated to be up 1.582.
Bloomberg is reporting this morning that the Biden administration is weighing new, harsher sanctions against Russia’s lucrative oil trade, seeking to tighten the squeeze on the Kremlin’s war machine just weeks before Donald Trump returns to the White house. The summary of all the potential actions is that the Biden administration is contemplating tougher sanctions on Russia’s oil trade to further strain Russia’s finances and bolster Ukraine‘s negotiating position before Trump assumes office. These deliberations reflect a shift in the administration approach, having previously been cautious around spiking energy prices ahead of the election. But with fears growing that Trump may seek to force Ukraine into a quick deal with Russia to end its nearly three-year-old war, the Biden administration is now open to more aggressive action. The market’s reaction to this news has been uneventful so far as prices are a couple cents higher on products and crude oil is 80 cents higher currently.
OPEC released their monthly outlook this morning and they reduced their estimate of demand growth for the fifth straight month making it the deepest reduction in 2024 outlook so far. They expected 2024 growth to now be 1.61 million bpd compared to the last estimate of 1.82 million bpd. Its 2025 demand growth forecast dropped from 1.54 million bpd to 1.45 million bpd.
The EIA on the other hand in its Short-Term Energy Outlook estimated world petroleum demand in 2024 is expected to increase by 890,000 bpd to 103.3 million bpd and increase by 1.29 million bpd to 104.32 in 2025.