Hurricane Francine knocks 39% of Gulf crude production offline
September 12, 2024
The DOE inventory report showed crude oil inventories up 830,000 barrels to a total of 419.14 million barrels and last year there were 420.59 million barrels. US crude oil production continue to hold steady right around 13 million bpd and this week was 13.3 million bpd.
Gasoline supplies were up 2.31 million barrels putting total stocks at 221.55 million and last year there were 220.30 million.
Distillates supplies were up 2.30 million barrels putting total stocks at 125.02 million and last year there were 122.53 million.
Propane inventories built by 1.127 million barrels putting total inventories at 96.817 million barrels and last year at this time there were 99.113 million. Conway inventories were up 356,000 to a total of 26.318 million and last year there were 26.666 million barrels. Gulf Coast inventories were up 665,000 putting total stocks at 56.917 million and last year there were 58.421 million. Propane inventories are in good shape and the outlook is still forecasting more builds in the next couple weeks. Inventories are not expected to get to 100 million, but they might get close.
Energy prices has traded higher this morning mainly the news that Hurricane Francine has 39% of the Gulf of Mexico production offline. This support for prices will pass and the demand destruction will be next story and that will put pressure back on the market to the downside. This will very likely keep the market volatile and in a trading range as the market continues the current trend of softness.