Energy Markets Trade Higher on Stimulus News
December 30, 2020
API reported crude stocks down 4.8 million barrels and the Reuters estimate for today’s DOE inventory update is down 2.6 million barrels. Bloomberg estimate down 2.450 million barrels.
Gasoline in the API was down 718,000 barrels and from Reuters survey estimate is for a build of 1.7 million. Bloomberg up 213,000 barrels.
Distillate in the API were down 1.9 million barrels and Reuters estimate is for there to be a build of 529,000 barrels. Blomberg down 403,000 barrels.
The energy markets traded higher yesterday focusing on the stimulus bill. The volume of trade was very light.
The propane estimate for today is for stocks to be down 2.2 million barrels and the five year average for this reporting week of the year is down 2.218 million barrels.
The US Dollar also is trading lower helping to support higher commodities prices.
The market appears that it wants to continue higher but has not been able to breakout. The stimulus bill is supportive, as well as, the lower dollar but new cases of covid and possible restrictions and more production expected from OPEC+ is keeping gains limited. The energy market is congested and likely to be that way until we get into the new year.