Market digests bearish private jobs report
June 5, 2025
The DOE inventory report had crude oil stocks down a big 4.30 million barrels, gasoline stocks were up 5.22 million barrels and distillates were up 4.23 million barrels.
US crude production continues to hold steady at 13.408 million barrels per day.
Total crude oil stocks are now at 436.059 million barrels and last year they were 455.922.
Total gasoline stocks are now at 228.300 and last year they were 230.946.
Total distillate stocks are now at 107.638 and last year they were 122.485.
Propane inventories also saw a big build of 6.844 million barrels putting total stocks at 61.943 million barrels. Last year supplies were 68.830 million. Midwest stocks built 879,000 barrels, putting total Midwest stocks at 13.596 and last year they were 19.444. Gulf Coast stocks were up 5.662 million barrels, putting total Gulf Coast stocks at 41.006 and last year they were 39.423. This week’s big build is likely an outlier and we will need to watch the next few weeks to see if this data evens out. Many market participants have said they feel it was a timing issue with when exports got reported so again, we will see what the next few weeks bring and the likelihood that the data evens out.
Saudi Arabia is giving the indication that they are willing to increase production to gain market share. They have grown increasingly frustrated with other OPEC+ members exceeding their quotas even as Saudi Arabia cuts more than their quota will allow.
The ADP private jobs report was bearish as the numbers were not favorable. Private sector new jobs we up 37,000 in May, which was well below the expected 110,000 jobs and below the expected range of 70,000 to 180,000.