EU adopts more sanctions against Russia
December 18, 2024
The average estimates for the DOE inventory report today from the Bloomberg survey are crude oil down 1.596 million, gasoline up 1.256 million and distillates up 683,000.
The API inventory update called crude stocks down 4.7 million barrels, gasoline up 2.4, and distillates up 700,000.
The market sold off yesterday and brought energy prices off their highs and back into the trading range keeping us all guessing where these markets are headed. Today they have bounced and are higher waiting for the news from the Fed on what they will do with rates. The expectation is that the Fed will cut rates by 25 points, and this will be good for the economy and good for energy demand.
The fire at HF Sinclair’s Tulsa Refinery West did help to firm up group gasoline basis on the day and there were several cash market traders out buying group gas. The European Union has adopted a 15th package of sanctions against Russia, including stricter measures against Chinese entities and more vessels from Russia’s so-called shadow fleet. Britain sanctioned 20 ships that it said were using illicit practices to avoid sanctions on Russian oil. We will have to see if these actions have some impact on crude sales. So far, Russia and China have managed to work around the sanctions.