DOE Report: Crude Stocks in Cushing Are Down
July 2nd, 2020
The DOE inventory report from the government called crude oil stocks down a big 7.195 million barrels and the crude stocks at Cushing, Ok were down 263,000 barrels. The big draw continues to support crude oil above the critical $40 dollar level. Gasoline stocks were up 1.199 million barrels and distillates were down 593,000 barrels.
Propane had a very large 3.268 million barrel build. Midwest stocks were up 1.433 million barrels and the Gulf Coast was up 809,000 barrels. The 3.268 million barrel build was the largest build of 2020 season and the largest build since August. But the EIA changed how it reports propane. It used to be propane and propylene together and now it is just propane. So, for just propane this looks like it is the biggest weekly build since late 2017. Total US propane stocks are at 74.599 million barrels 2.286 more than last year at this time. Gulf Coast stocks are at 44.807 million 1.492 million more than last year and the Midwest has total stock of 18.434 million barrels which is 3.371 million less than last year.
The reports keep coming in that crude and products are coming out of floating storage as demand continues to be good. This is my biggest challenge with the energy market right now and I know that these comments are about global storage and global demand, but I see US crude stocks at 533.527 million barrels 65.036 million more barrels than last year. Total US gasoline stocks at 256.521 million barrels 25.879 million more barrels than last year and total US distillates stocks at 174.127 million barrels 47.339 million more than last year and I think there is going to have to be a lot of demand and lower production to whittle these down. It will happen but right now the US has an abundance of inventory.
The US jobs number out this morning was very good. The US added 4.8 million jobs in June. This was much better than expectations and unemployment rate is now at 11.1%.
Equites are higher and that is positive for energy prices as they trade higher to end a holiday shortened week. Positive equities equal positive economy equals energy demand and higher energy prices. Trading activity will be very limited here after this morning as trader head out early for a long weekend.