Potential Chinese Stimulus Rumors Bolster Energy Prices
July 12, 2023
The API inventory report called crude oil stocks up 3 million, gasoline was up 1 million, and distillate were up 2.9 million.
The average estimates from the Bloomberg survey for today’s DOE inventory update is for crude oil inventories to be down 550,000 barrels, gasoline down 1.303 million barrels, and distillates down 527,000 barrels.
There are reports that China is planning a large package of economic stimulus to boost up their economy. This helped energy prices trade higher. This along with the continued talks of oil production cuts put some support under prices. Russia proposed cuts have been greatly doubted by the markets but today the market got some data that gave some credence that maybe they are finally starting to cut some production. Traders will need to continue to see proof and if all these proposed cuts are backed up by real data, then prices would certainly be supported.
The Average estimate for today’s propane inventory update is to see a build of 2.7 million barrels.
Yesterday, the US Energy Information Administration (EIA) cut its forecast for 2023 US crude oil production. The EIA now forecast US total petroleum consumption, a proxy for demand, to rise by 100,000 barrels per day to 20.4 million barrels this year.