Crude and Gas Stocks Were Down
July 25th, 2019
The DOE report had crude stocks down a big 10.84 million barrels and the crude stocks at Cushing, Ok were down 429,000 barrels. Gasoline stocks were down 226,000 barrels and distillates were up 613,000 barrels. US production was also down 700,000 barrel to 11.3 million bpd.
Propane supplies were up 1.575 million barrels. The Midwest stocks were up 787,000 barrels and the Gulf Coast supplies were up 267,000 barrels. Total propane stocks are now at 79.052 million barrels14.570 million more than last year at this time. The Midwest is at 23.378 million barrels 1.977 million more than last year at this time. The Gulf has 4.999 million barrels which is 12.347 million more than last year at this time.
Despite the big decline in crude oil supplies the market was focused on the bearish factors of world demand outlook, China trade wars and lower economic data from Europe and Asia. They are also looking at the shut down in refineries and production from Tropical Storm Barry as temporary as there was no major damage. But crude stocks have decline by roughly 40 million barrels since the start of June which should be having an impact on supplies and giving some indications that supply and demand tightening.
Also putting some selling pressure on prices was Iran’s President saying that Iran was ready for “just” negotiations with the US but it did not mean surrender. But he did not say what exactly what they were ready to have negotiations about but the market took these comment as positive and eased some of the Iran premium that has been built into the market. The Middle East situations will continue to be watched closely and is a big factor on what direction there market are headed.
The UK has gained some support from France, Italy, and Denmark for its plan for an EU lead naval mission to ensure safe shipping through the Strait of Hormuz.
The European Central Bank gave the indication that they are ready form more rate cuts and possible restarting their bond buying program to stimulate the Euro Zone economy. The energy market takes this a bullish news.