No Restrictions on Russian Energy Products Yet
February 25, 2022
The DOE inventory report had crude stocks up 4.514 million barrels, and Cushing, Ok crude stocks were down 2.049 million barrels. Gasoline stocks were down 582,000 barrels and distillates were down 584,000 barrels. Cushing, Ok stocks are now at 23.8 million barrels the lowest level since September 2018.
President Biden said more barrels of oil will be released from the Strategic Petroleum Reserve as conditions warrant. The President said US oil and gasoline companies should not exploit this moment to increase prices. The White House made it clear that it would try to prevent oil prices from spiking through a release of the emergency reserves with international partners and by avoiding sanctions on energy transactions.
The news will continue to drive energy prices. We should expect an extended time period of high geopolitical tension and higher risk factors for energy prices, as well as all commodities. It is important to note again that there are no export restrictions on Russian energy supplies right now.
Propane stocks were down 3.901 million barrels putting total stocks at 38.002 million barrels and last year there were 43.491 million. Midwest stocks were down 335,000 barrels putting total Midwest stocks at 12.583 million barrels and last year there were 9.759 million barrels. Gulf Coast stocks were down 2.183 million barrels putting total Gulf Coast stocks at 18.822 million and last year there were 26.534 million barrels.