European Central Bank Announces Interest Rate Hike
February 1, 2023
The rebound in energy prices yesterday was driven by tight world supplies, the SPR sales of 1,000,000 million barrel per day of oil have ended, a drone missile attack on Iran this past weekend, and an EU embargo expected to start on February 5th of Russian fuel exports that could support diesel prices. Uncertainty over the Fed raising interest rates either 0.25% or possibly 0.50% provided to yesterday’s volatility.
England and European Central Bank have already announced a 0.5% rate hike.
The API inventory report called crude oil stocks up 6.3 million barrels, gasoline stocks up 2.7 million barrels, and distillate stocks up 1.5 million barrels.
The EIA reported that US total oil demand in November increased by 0.1% or 20,000 bpd on the year to 20.593 million bpd. US gasoline demand in November fell by 1.9% or 172,000 bpd on the year to 8.849 million bpd, while US distillate demand in November fell by 3.1% or 129,000 bpd on the year to 4.061 million bpd.
Phillips 66 said it plans to operate its refineries in the mid-80% range of their combined total crude oil processing capacity in the first quarter of 2023. It expects higher levels of planned maintenance in the first quarter to cut production while units are shut for overhauls.
The January consumer confidence number came in light. This was just 107.1. That’s the lowest read in a year. The market expectation was 109.5 and the previous number was 109.
Today we get the ADP private payrolls number, and the market is looking for 190,000. On Friday, the non-farm payroll report is looking at a similar level of 187,000 new jobs.
Private payrolls just out this morning was just 106,000 new jobs a miss on expectations. Some economist said the weather was a factor and numbers should be better in the next reporting week. We will see how the government numbers come out tomorrow.