Crude Oil Optimism is On the Rise
February 24, 2021
The API had crude up 1 million barrels and the estimates for today are for them to be down 5.2 million barrels according to the Reuters survey. API had gasoline stocks up 66,000 barrels and the estimate for today is for them to be down 3.1 million. Distillates were down 4.5 million and the outlook for today’s DOE inventory update is for them to be down 3.7 million barrels. Cushing crude stocks were up 2.8 million barrels according to the API.
The average estimates for today propane inventory update is a draw of 3.32 million barrels right in line with the 5 year average inventory move for this reporting week at 3.369 million barrels.
From boom to bust and back again. Several stories are out calling for $100 dollar crude oil on the continued outlook of strong demand and lower production. The oil market moves in cycles and after the crash to negative $40 per barrel the other extreme has made it to the news headlines.
The FDA endorses J&J’s single shot COVID vaccine. This news should get this vaccine to market hopefully quickly and will provide more optimism for the bullish outlook for energy demand.