Fuel Demand in India Increased Sharply in February
March 1, 2023
The API in their inventory report released yesterday afternoon called crude oil stocks up 6.2 million barrels, gasoline stock down 1.8 million, and distillates down 340,000 barrels. US crude oil stocks are 15.1% higher than a year ago and expected to rise. There are signs however that US crude oil production is not rising as expected this year.
China’s manufacturing PMI rose to 52.6 in February up from 50.1 in January and the sharpest increase since April of 2012 a strong sign that the country’s economy is recovering quickly post-COVID. Of course a strong recovery is what many are calling for to boost energy demand and support prices. The battle between a strong global economic outlook increasing demand versus rising crude stocks, and high inflation, negatively impacting demand continues. The market has a ton of unknows and uncertainty around these factors and currently there is not a strong conviction which keeps the markets trading in a range and having high volatility as any new news can change the market.
India’s fuel demand increased sharply in February with diesel and gasoline sale up 12%.
The average estimates for today propane inventory report are for inventories to decrease by 2.3 million barrels.
The International Energy Agency said Russia’s revenues from oil and gas exports fell by nearly 40% in January as price caps and Western sanctions cut the proceeds from Moscow’s most lucrative export.
Chevron Corporation’s Chief Executive Officer, Michael Wirth, said the company is production about 90,000 bpd from its Venezuelan oil joint ventures, nearly double its daily output in 2022. He said output is up from about 50,000 bpd before the easing last year of the US sanctions. He added that Chevron’s production from Venezuela could remain modest, with the result of future elections still a factor.