Crude Weakens on World News
November 1, 2023
In yesterday’s trading crude oil prices were down and refined fuel products price were up slightly. Crude was lower on weaker than expected manufacturing and services in China, Eurozone inflation falling to 2.9% in October from 4.3% in September which pushed up the US dollar index and pushed down oil prices, and the risk premium for the Israel/Hamas war falling due to no oil supply disruptions.
The API numbers had crude oil up 1.374 million barrels, gas down 357,000 barrels, and diesel down 2.48 million barrels.
The average estimates from the Bloomberg survey for the EIA inventory update are crude oil stocks up 1.481 million barrels, gasoline down 593,000 barrels and distillates down 1.584 million barrels.
The average estimate for today’s propane inventory update is for stocks to be down 500,000 barrels.
The US reported in a monthly report that total US crude oil production rose to 13.053 million bpd, which is a new monthly record according to the EIA. Some are questioning these numbers as the production from US shale has been down the last three months.
The drought has caused the Panama Canal to handle fewer boats due to low water levels.
A Reuters survey showed that slow global economic growth will keep crude oil prices anchored below $90 per barrel this year and next unless the Israel-Hamas conflict draws in more countries in the Middle East and exacerbates supply tightness.
According to sources, Saudi Arabia’s military has gone into a state of high alert following deadly clashes with Yemen’s Iran-backed Houthi rebels.
US consumer confidence fell for a third consecutive month in October, amid persistent worries about inflation, higher borrowing cost and the political environment. The Conference Board said its consumer confidence index fell to 102.6 in October from an upwardly revised 104.3 in September.