Biden Will Travel to Middle East to Ask for More Oil
July 13, 2022
The average estimates for today’s EIA inventory update are calling for crude oil supplies to be down 469,000 barrels, gasoline supplies down 1.008 million barrels and distillate supplies up 792,000 barrels.
The API inventory report put out yesterday said that crude oil stocks were up 4.8 million barrels, gasoline stocks were up 3.0 million barrels, and distillates stocks were up 3.3 million barrels.
The energy markets were sold off hard yesterday as recession fears and China COVID-19 lockdowns again spooked traders and had them lightening up their positions. Despite the wide daily trading range and move lower it was a “normal” day in these very volatile times. The bulls still have a fair cushion before the market can call a top and say the trend is down. The massive rally to the upside has created a wide range for the market to correct lower and still be in a bullish uptrend. The bears need more follow through and days like yesterday to open up a larger move to the downside or start a bearish trend.
The average estimate for the propane inventory update today is for propane supplies to build by 1.46 million barrels.
The EIA said that US crude production and petroleum demand will both increase in 2022 as the economy grows. The EIA projected US crude oil production will increase to 11.91 million bpd in 2022 and 12.77 million bpd in 2023 from 11.19 million bpd in 2021. The EIA also projected petroleum and other liquid fuels consumption would increase from 19.78 million bpd in 2021 to 20.48 million bpd in 2022 and 20.80 million bpd in 2023.
President Biden is going to the Middle East this week to continue to ask for more barrels of oil. Some have speculated that the recent OPEC demand growth outlook that was scaled back was all part of the plan to allow Saudi Arabia to continue to stick to their story that more oil is not needed.