Bullish Inventory Report Aids Energy Rally
August 2, 2023
The API delivered a very bullish inventory report yesterday. Crude stocks were down 15.4 million barrels, gasoline down 1.68 million barrels and distillates down 512,000 barrels.
The average estimates for today’s DOE inventories update from the Bloomberg survey are crude stocks down 713,000, gasoline down 1.407, and distillates down 89,000.
The average estimate for today’s propane inventory update is for stocks to build by 1.936 million barrels.
The market concern continues to grow over the energy market’s ability to continue with strong demand as inventories decline and US production declines and OPEC+ cuts production. This current narrative supports this rally in energy prices.
Bloomberg reported yesterday that the Biden Administration is again delaying a replenishment of the SPR after deciding the offers it received were too expensive.