Bullish EIA Reports Spurs Week of Energy Market Gains
June 24, 2024
Baker Hughes reported that 3 crude oil rigs came offline this past week in the US down to a total of 485 rigs. US oilrigs have fallen by 121 in 2023 and by 15 in 2024 thus far.
Energy prices closed lower on Friday but had another week of gains driven mainly by an overall bullish EIA weekly inventory report showing crude oil, gasoline, and distillates all fell more than expected on the week. Also, supportive to prices was the increasing geo-political risks and possible supply disruptions in the Middle East and Europe.
According to the EIA data, US refiners produced jet fuel last week at the fastest pace since the pandemic, as they look to keep up with forecasts of record air travel this summer.
Crude oil inventories decreased 2.5 million barrels week over week putting total stocks at 457.1 million barrels, US crude oil inventories are 4% below the five-year average for this time of year. Gasoline inventories decreased by 2.3 million barrels week over week and are now 1% below the five year average. Distillate fuels decreased by 1.7 million barrels week over week and are 8% below the five year average for this time of year. Propane inventories increased by 1.6 million barrels week over week and are 10% above the five year average for this time of year.