IMF Raises Global Growth Forecast
January 31, 2024
The API inventory report had crude oil supplied down 2.5 million barrels, gasoline up 600,000 barrels, and distillates down 2.1 million barrels. The crude oil supplies at Cushing, OK were down 200,000.
Energy markets were mixed in yesterday’s trading. The news of China’s property giant, Evergrande being forced to liquidate put some pressure on energy markets Monday, but they tried to rebound on Tuesday on the back of news in the Middle East.
There are reports that the President has made a decision as to how he will respond to the drone attack that killed three US service member and injured roughly 30 more. They say that he is likely to strike Iranian backed rebels in Iraq, Syria, and Yemen but not Iran itself.
The International Monetary Fund raised their global growth forecast up to 3.1% from 2.9% in their previous October 202 forecast. The IMF raised the US GDP forecast to 2.1% in 2024 from their October 2023 forecast of only 1.5%.
A Department of Energy document showed that the US is seeking to buy 3 million barrels of US produced sour crude oil for the SPR for delivery in June.
JP Morgan said the spreading conflict in the Middle East remains the most visible and growing risk for energy markets.
Kpler is estimating monthly propane exports from the US to Europe stood at 504,000 mt as of January 29, the lowest quantity since June 2023.
China’s manufacturers reported a continued downturn in business activity this month though it was slightly less widespread than at the end of 2023. The official purchasing managers index increased marginally to 49.2 in January 2024 up from 49.0 in December 2023. A number below 50 indicates contraction.