Fed Chair Powell Plans More Interest Rate Hikes
August 28, 2023
The refinery fire in Louisiana rallied prices on Friday and offered support to a market that is already tight on supplies. Prices continue to be supported by the OPEC+ production cuts and world energy supplies falling.
The Baker Hughes Rig Count had oil rigs down by 8 to a total of 512, the lowest level since February 2022. Oil rigs have fallen by 106 rigs so far this year.
According to traders, shipping data and Reuters calculations, crude oil loadings from Russia’s western ports in August are seen slightly higher from July despite Moscow’s pledge to cut oil exports by 500,000 bpd.
The refinery fire news was enough to overcome a bearish report from Fed Chairman, Jerome Powell, who indicated more intertest rates hikes may be needed to bring down inflation.
Crude inventories are 2% below the five-year average. Gasoline inventories are 5% below the five-year average. Distillate inventories are 16% below the five-year average. Propane inventories are 21% above the five-year average.