Lower Gas Prices Offer Inflation Relief
August 10, 2022
The API weekly inventory numbers called crude oil stocks up 2.15 million barrels, gasoline stocks down 627,000 and distillates up 1.37 million.
The Reuters survey for today’s DOE reports is saying crude oil and gasoline to be down 400,000 and diesel to be roughly unchanged.
Crude oil prices feel slightly yesterday but diesel and gasoline price both rose sharply. It was a very volatile trading day with crude prices starting the day up significantly and then falling hard and ending flat. The continued fears of inflation and a recession lowering energy demand dominate the news.
Ukraine halted oil flows through the Druzhba oil pipeline to parts of Europe because sanctions prevented a payment from Russia for transit fees to go through the pipeline. Flows on the southern route of the pipeline were affected but not flows to Poland and Germany. Oil price were up on the news but fell later as details became clearer that flows ae expected to resume within days.
From Reuters. US consumer prices are expected to have risen at a much slower pace in July due to a sharp drop in the cost of gasoline, delivering the first notable sign of relief for Americans who have watched inflation climb over the past two years.
The average estimates for today’s propane inventory update are for stocks to build by 1.97 million barrels.