Fed Chair Says 2024 Rate Cut Contingent on Inflation Dropping
March 7, 2024
The DOE inventory report had crude oil supplies up 1.37 million barrels, gasoline down 4.46 million and distillates down 4.13 million. Refinery utilization was up 3.40% to 84.90% of capacity.
Propane supplies were down 4,000 barrels to a total of 51.177 million barrels. Midwest stocks were down 242,000 barrels putting the total Midwest stocks at 12.227 million barrels. Gulf Coast supplies were up 277,000 barrels putting total Gulf Coast stocks at 30.472 million barrels.
The market has lost some momentum and is stuck as it tries to figure out what the Fed will do with rates. In comments yesterday Fed Chair Jerome Powell said he expects an interest rate cut this year, but this is still contingent on how inflation runs. There is a possibility that no interest rate cut will occur this year.
ADP reported yesterday that 140,000 new private jobs were created in February. This was slightly lower than the 150,000 expected by economists.
The distillate stocks decline of 4 million barrels took inventories to the lowest seasonal level since 2022 and before that 2014.
According to reports Chevron has restarted its drilling operations in Venezuela despite signals from the White House that sanction exemptions will not be renewed in April.