EU Working to Cap Russian Energy Prices
September 8, 2022
The API report had crude oil stocks up 3.6 million barrels and gasoline stocks were down 836,000 barrels and distillates were up 1.8 million barrels.
The average estimates for today’s DOE inventory report from the Bloomberg survey are for crude oil stocks to be down 667,000 barrels, gasoline stocks down 1.850 million barrels and distillates down 100,000 barrels.
The EU is still working to cap Russian energy prices and as a result Russia says they will supply no energy to any country under the price cap system.
Demand concerns which we have been talking about for a while now were front and center yesterday for no real reason and those fears tanked the market. Crude sold off hard and took gasoline with it. ULSD had a volatile day but was better supported because Europe will continue to need US diesel and with its low inventories that is still concerning.
The propane outlook for today is to see stocks build by 2.0 million barrels.
WTI Crude oil sold off over 5% to a new 6 month low yesterday at $81.94.
The continued COVID lockdowns in China are a still a concern for energy demand. Customs data showed that China crude oil imports fell by 9.4% in August versus a year earlier.