Fuel Inventory Draws Offer Bullish Energy Support
September 29, 2022
The DOE report had crude inventories down 215,000 barrels, gasoline inventories were down 2.4 million and distillates down 2.9 million, draws across the board offered support to the energy markets. Refinery runs were down 3% to 90.6% of capacity.
The European Union is considering adding shipping restrictions to its oil sanction as the bloc continues to discuss the introduction of a price cap on Russian oil.
Also supporting price was the report that US crude oil production fell by 100,000 bpd down to a total of 12.1 million bpd. The EIA report also had big increases to gasoline and distillate demand.
Propane inventories were up 1.6 million barrels. Propane inventories have seen good growth in the last month with above average builds adding some selling pressure to prices near term, but the longer-term concerns are still with us.