OPEC “Cautiously Optimistic” about 2024 Oil Market
December 14, 2023
The EIA inventory report had crude inventories down 4.258 million barrels, gasoline up 409,000 barrels and distillates up 1.494 million.
Propane inventories were down 1.042 million putting total stocks at a still healthy 95.925 million barrels.
Midwest stocks were up 1.524 million barrels putting the total of Midwest stocks at 28.697 million.
Gulf Coast stocks were down 849,000 barrels putting total Gulf Coast stocks at 51.921 million barrels.
The Fed left rates unchanged at that help the equites market have a strong day up yesterday and giving some support to crude oil prices. The IEA changed their demand forecast again yesterday to 1.1 million of growth in 2024. This comes on the back of many others revising their demand outlooks down. The IEA cited improvements in the US economy as a big reason for their update. The economic outlook for the US and the world is a big fact for the energy demand. With China and the US having a lot of uncertainty it has helps energy prices sell off. The talk of a shallow or soft landing has been a supportive talking point but the US is not out of the woods on this deal.
OPEC said it remained cautiously optimistic about 2024 oil market fundamentals and blamed “exaggerated concerns” about demand for a recent decline in prices, as it stuck to its relatively high 2024 oil demand forecast.
Energy prices after putting in six-month lows are seeing a strong rebound today. Many are asking the question of whether the bottom has now been put in place. If is still early in this rebound to make this call.