Russia May Support Rollover of Crude Output Cuts Beyond 2020
October 21, 2020
The inventory report put out by the private firm API said that crude oil stocks were up 584,000 barrels and the stocks at Cushing, Oklahoma were up 1.2 million barrels. Gasoline stocks were down 1.6 million barrels and distillates had a big 6 million barrels decline.
The estimates for today’s DOE numbers from the Reuters survey are for crude to be down 1 million barrels, gasoline down 1.8 million barrels and distillates down 1.7 million barrels.
The average estimates from the Bloomberg survey are calling crude down 1.141 million barrels, gasoline down 1.415 million barrels and distillates down 1.924 million barrels.
Estimates for the inventory report today for propane inventories to decline by 1 million barrels.
Nancy Pelosi’s self-imposed deadline passed but she is still hopeful a stimulus agreement can be reached this week. John Kilduff partner at Again Capital in New York said, “If we get a deal, I think that would be supportive, and if we don’t get a deal, I think that’s going to be somewhat punishing for prices”.
Sources stated that Russia may support a rollover of the global output cuts beyond 2020, when they are due to be eased, if world markets worsen due to slow demand and an increase in new coronavirus cases. OPEC and other producers led by Russia is scheduled to relax output cuts from January 1st. However, Russia, in need of cash for its economy, may agree to keep them at current levels if oil markets worsen and if such proposals are put forward.
The energy markets continue to congest as the news items are the same and the market watches for any new developments on stimulus, inventory , demand, and COVID-19 cases.