Crude Stocks Build as Eurozone Growth Slows
November 7, 2019
Propane inventory was up 320,000 barrels. The Midwest showed a decline of 755,000 barrels and the gulf coast had a build of 520,000 barrels. Total stocks are currently at 100.168 million barrels. Midwest total stocks are 25.790 million barrels 1.544 million barrels less than last year at this time. Gulf Coast inventors are at 61.546 million barrels which is 15.440 million more barrels than last year at this time.
The DOE inventory report said that crude oil stocks were up 7.93 million barrels putting total stocks at 446.782 million barrels, which is 14.995 million more than last year at this time. Cushing, Ok stocks were up 1.714 million barrels putting total stocks at Cushing at 47.745 million barrels, which is 13.449 million more than last year at this time. Gasoline stocks were down 2.83 million barrels putting total stocks at 217.229 million barrels which is 10.792 million less barrels than last year at this time. Distillate stocks were down 620,000 barrels putting total stocks at 119.132 million barrels which is 3.725 million less than last year at this time.
The build in crude stocks was more than expected with most guesses calling for a 1.2 to 2-million-barrel range. Most market analyst say the lower refinery runs have been helping crude stocks to build.
OPEC has been back and forth on production cuts. One day they need to cut because production in the US is strong and then the next day, they are not wanting more cuts because the global economic outlook is bad and energy demand will be lower. Now today they say the economic outlook is better for 2020 as growth has held up and the China versus the US trade war tension have eased. OPEC is good at talking their position and they will likely have a different message tomorrow of next week.
The meeting between President Trump and President Xi to sign the US and China phase 1 trade deal may be delayed until December as discussion continue.
Putting some bearishness into the market was an International Monetary Fund report that said the eurozone economic growth was set to slow more than expected as the manufacturing crisis in the EU could now spill over into the larger service sector. The composite eurozone business activity did expand just slightly but remained close to stagnation, which is a reading of 50. Below 50 indicates contraction.
Iran has started to inject uranium gas into centrifuges at it underground Fordow nuclear facility, as part of its fourth step to scale back its commitments to the nuclear deal with major powers. French President, Emmanuel Macron, called Iran’s move “grave”, saying it explicitly signaled Iran’s intent for the first time to quit the nuclear deal with world powers.
Russia’s Energy Minister, Alexander Novak, said the current oil price of more than $60 per barrel ( Brent Crude) shows that markets are stable.