Fed Likely to Remain Aggressive Against Blistering Inflation
July 14, 2022
The EIA inventory report said that crude oil stocks were up 3.25 million barrels, gasoline stocks up 5.83 million barrels and distillates up 2.67 million barrels. Builds across the board is a welcome thing but take the over six million barrels SPR release and crude stocks over all are down. Crude oil stocks in the Strategic Petroleum Reserve were down 6.8 million barrels putting the SPR at its lowest level since August 1985.
Total crude stocks are now at 427.054 million barrels and last year they were 437.580. Gasoline stocks are now 224.937 million barrels and last year they were 236.535. Distillate stocks are now at 113.803 and last year they were 142.349 million barrels.
Gasoline demand was down 1.526 million bpd to a total of 8.902 million per day, down 23%. Distillate demand was down 775,000 bpd to a total of 4.889 million bpd, down 14%.
Propane stocks were up 2.890 million barrels much more than the 1.46 million expectations. Total stocks are now 57.801 million barrels and last year there were 59.563 million barrels. Midwest stocks were up 869,000 barrels putting total stocks at 18.293 million barrels and last year they were 17.459 million barrels. Gulf Coast stocks were up 1.663 million barrels putting total Gulf Coast stocks at 30.292 million barrels and last year they were 32.134 million barrels.
The Fed could now take some aggressive action to raise interest rates 100 to 150 basis points after yesterday’s CPI came in at a 9.1% increase and the expectation was for it to be 8.8%.
Chevron CEO Mike With is waring that the selloff in oil may be short-lived. In an interview with CNBC, he said that he thought the sell-off in oil was great for the economy and it is great that prices have moderated but he also sees risk remains secured to the upside.
The IEA lowered their world petroleum demand forecast for 2022 by 240,000 bpd down to 99.2 million bpd and by 280,000 bpd in 2023 down to 101.3 million bpd.