European Leaders Approve Stimulus Plan
July 22, 2020
The inventory report put out by the API called crude oil stocks up 7.5 million barrels and the stock at Cushing, Ok were up 716,000 barrels. Gasoline stock were down 2.0 million barrels and distillate were down 1.4 million barrels .
WTI crude oil finally broke out of its sideways trading range and tested higher yesterday but the fundamentals continue to be a strong headwind. Inventories are still good, OPEC+ is increasing production in August, and demand is being impacted by the virus and additional restrictions. The market has not been looking at fundamentals but at some point, it will have to.
The US ordered that the Chinese consulate in Huston, TX be shut down after the US released indictments against two Chinese hackers who were accused of targeting American firms involved with coronavirus research. This is the latest sign of rising tensions between the US and China. China declared the move as “outrageous and unprecedented.” This development raises the concerns about the trade war and demand could be impacted.
Average estimates for today’s propane inventory report is for there to be a build of 2.8 million barrels.
Average estimates for the DOE inventory report today from the Bloomberg survey, crude down 337,000 barrels, gasoline down 1.808 million barrels, and distillates up 850,000 barrels.
European leaders approved a large 750 billion stimulus package which was supportive to lifting equity markets and crude oil markets yesterday.