Fed Chair: Path Ahead Remains Uncertain
September 17, 2020
The inventory report from the government said that crude oil stocks were down 1.39 million barrels putting total stocks at 496.045 which is 78.919 million more barrels than last year at this time.
Cushing, Ok crude oil stocks were down 74,000 barrels putting total stocks at 54.277 million barrels which is 15.596 million more than last year.
Gasoline stocks were down 381,000 barrels putting total stocks at 231.524 million barrels which is 1.839 million more than last year.
Distillate stocks were up 3.46 million barrels putting total stocks at 179.306 million barrels which is 42.643 million barrels more than last year.
Propane stocks had a draw of 1.239 million barrels putting total stocks at 96.141 million barrels which is 379,000 barrels less than last year. Midwest stocks were up 885,000 barrels putting total Midwest stocks at 27.334 million barrels which is 488,000 barrels less than last year. Gulf Coast stocks were down 2.025 million barrels putting total stocks at 54.949 million barrels which is 748,000 barrels less than last year.
Fed Chair Jerome Powell said yesterday in his comments that “the path ahead remains highly uncertain”. The Fed expressed the need for further stimulus. The Fed also left rates unchanged and continue to give the indication that rate will remain low for years.
The OPEC + monitoring committee which meets today is unlikely to announce any recommendation to make larger oil cuts but keep the current 7.7 million barrels per day quota to year end. They will recommend extending the compensation period for countries to make up for past overproduction. They will also like address over production by other members and try to get them in compliance. If this is what OPEC does it will not be market moving news.
Weekly jobless claims released this morning came in at 860,000 for first time claims for unemployment versus and expectation of 875,000.