Fed Chair Powell Says US Central Bank Won’t Raise Interest Rates Too Quickly
June 23, 2021
The API inventory report called crude oil stocks down 7.2 million barrels. Cushing, Ok crude oil stocks were down 2.6 million barrels. Gasoline stocks were up 960,000 barrel and distillates were up 990,000 barrels.
The average estimates for today’s DOE inventory report from Bloomberg. Crude down 4.386, gas up 1.255 million and distillates up 444,000.
Federal Reserve Chair, Jerome Powel reaffirmed the US central bank’s intent to encourage a “broad and inclusive” recovery of the job market, and not to raise interest rates too quickly based only on the fear of coming inflation.
Descartes Labs said US gasoline demand in the week ending June 18th increased to the highest level this year, increasing by 0.7% to 9.587 million bpd. Demand has surpassed 9.5 million bpd in four of the last six weeks.
According to travel data company Arrivalist, about 43 million road trips are now expected this July 4thweekend, which is about 25% higher than last year’s level and higher than 2019’s pre-pandemic levels.
An OPEC+ source said OPEC+ is discussing a further gradual increase of oil output from August, but no decision had been made yet on the exact volume. Most see this additional supply as needed as there are many outlook calling for supply and demand to balance quicker than they originally forecast and for the market to potentially be in a deficit in the third quartet. OPEC+ is returning 2.1 million bpd to the market from May through July as part of a plan to gradually unwind last year’s record oil output cuts, as demand recovers from the pandemic.
Estimates for today’s propane inventory update is for supplies to build by 2.41 million barrels.
“Oil’s underlying physical demand picture remains positive,” said OANDA analyst Jeffrey Halley. “Despite the noise in financial markets, the real world is on the right track and will require increasing amounts of energy as it reopens.”