Energy Markets Rise on Conflict News
April 3, 2024
The API inventory estimates released late yesterday called crude oil down 2.286 million barrels, gasoline down 1.46 million and distillates down 2.54 million.
The average estimate for today’s DOE numbers is for crude to be up 9,000 barrels, gasoline down 453,000 barrels and distilled down 664,000 barrels.
The average estimate for the propane inventory report is that propane supplies will be up 789,000. Over the last five years the average inventory change for this reporting week is a build of 272,000 barrels.
The energy markets were higher yesterday mainly driven by the continued and currently more escalated unrest in the Middle East, and the news of another Russian refinery damaged by Ukraine drones. The market is also concerned about the possible retaliation of Iran against Israel after missile hit the Iran embassy in Syria killing skilling several officer of the Revolutionary Guard.
Private payrolls increased by 184,000 in March better than expected. Companies added workers at the fastest pace since July 2023, indicating continuing strength in the US labor markets.
Russia’s exports of ultra-low sulfur diesel from the Baltic Sea port of Primorsk in April are set to fall by 16.4% on the month to 1.4 million metric tons, down from the 1.73 million tons scheduled for March. Diesel exports have been affected by unplanned stoppages and schedule maintenance at Russian refineries as well as seasonal growth in domestic demand.