OPEC+ Raises Production Minimally
August 4, 2022
OPEC+ agreed to increase production by just 100,000 bpd which is nothing really, but they did up the number.
The market has rallied and now sold off to roughly the same price level when the Russian invasion of Ukraine began. The market is now looking for the next catalyst to propel it higher and will likely congest for a while looking for that catalyst. The longer it takes for something to push the market to the upside, the more risk there is of a further downside move. RBOB gasoline futures have moved in a similar fashion while ULSD has not come down as much or to where ULSD prices sat before the invasion.
The DOE inventory report called crude stocks up 4.467 million barrels putting total stocks at 426.553 and last year there were 439.225 a 12.672 million barrel difference.
Cushing, Ok crude stocks were up 926,000 barrels putting total stocks at 24.466 million and last year there were 34.9 million a 10.434 million barrel difference.
Gasoline stocks were up 163,000 barrels putting total stocks at 225.294 million and last year there were 228.870 million barrels a 3.576 million barrel difference.
Distillate stocks were down 2.4 million barrels putting total stocks at 109.324 million and last year there were 138.744 million a 29.420 million barrels difference.
Propane stocks were up 1.820 million barrels putting total stocks at 63.614 million and last year they were 65.970 million a 2.356 million barrel difference. The five year average of stocks is 72.034 million a 8.420 million barrel difference.
Midwest stocks were 437,000 barrels putting total Midwest stocks at 20.357 million and last year there were 19.339 million barrels a positive 1.018 million barrels.
Gulf Coast stocks were up 1.087 million putting total Gulf Coast stocks at 33.192 million barrels and last year there were 33.963 million barrels a 771,000 barrel difference.