Jobless Claims Rise and Recession Fears Grow
April 21, 2023
Amos Hochstein, the special presidential coordinator for global infrastructure and energy security said the US could begin to refill its SPR as soon as the third quarter of 2023, if the price is right. However, he cautioned that the timeline would depend on a number of factors, including maintenance on the infrastructure while the reserve is half empty and how well the Biden administration can manage a congressionally mandated sale of 26 million barrels by June 30th.
Russia’s central bank said the value of Russia’s exports fell by 35% on the year in the first quarter of the year due in part to a Western price cap on Russian oil. However, it added that a fall in oil exports to the European Union had been offset by an increase in sales to Asian countries seeking oil at a discounted price.
Crude price fell again, and the downtrend continues due to US economic and recession fears, rising US unemployment claims, EIA unexpectedly reporting that total Us gasoline inventories rose, equites markets also selling off and the DOE report that showed implied diesel demand down 8.4% compared to last year at this time.
Weekly jobless claims were up last week, increasing the fear of a recession and lower fuel demand. The Economists’ estimates were for unemployment claims to be 240,000 and yesterday’s report had claims up 5,000 to a seasonally adjusted 245,000. This is the first time this data has hinted at a possible recession.