Have Interest Rates Reached Their Peak?
February 23, 2024
The DOE weekly inventory report had crude oil stocks up 3.51 million barrels, gasoline supplies down 290,000 barrels and distillates down 4.01 million barrels.
Total crude oil supplies are now at 429.91 and the 3-year average is 452.702. A 9.738 deficit to the 3-year average. Last year there were 479.041 million barrels.
Total gasoline supplies are at 247.037 and the 3-year average is 247.880. An 843,000 deficit to the 3-year average. Last year there were 240.066 million barrels.
Total distillates supplies are at 121.651 and the 3-year average is 131.443. A 9.792 deficit to the 3-year average. Last year there were 121.935 million barrels.
Federal Reserve Governor Christopher Waller said the Fed is under no pressure to lower interest rates and he said that the Fed is very likely to monitor data for at least two more months before making any change to interest rates. The Fed suggested that interest rates have very likely reached their peak. At the end of last year many began to hope that the Fed would be in a place to lower rates early in 2024. That will not happen, and it will likely take more time for the Fed to lower rates as they have appeared to be very cautious.
Energy prices rallied back after a sell off yesterday as attacks in the Red Sea continue.
BP’s Whiting, Indiana refinery is still offline. BP hopes to restart it next week and be up and running at full production in March.
The energy market has started out this Friday trading lower with a bit of profit taking into the weekend. There are also reports that Israel Prime Minister Benjamin Netanyahu’s war cabinet has approved sending negotiators to peace talks taking place in Paris today.