Russia to Close Borders, Limit Visas to China
January 30, 2020
Coronavirus is still the big news for the energy markets I hate to say. More people in China infected, and the spread continues which drivers the concern for economic impact and energy demand destruction. With these growing fears it puts selling pressure on energy prices. Market participants are also moving money to safer instruments like the US Dollar and as the dollar goes up it pressure energy down.
The World Health Organization will meet today to decide if this coronavirus situation is a global emergency. These numbers are a moving target but the latest numbers I have seen are that the death toll is at 170 and 7,921 case have been reported.
Russia has said that they will close their boarders with China and also limit visas.
Propane inventories were down 3.623 million barrels a bigger draw than expected and the big driver was exports. Exports were 1.569 million barrels a new record up 346,000 barrels from last week. Midwest stocks were down 1.584 million barrels and current inventory is 57,000 barrels less than last year. The Gulf Coast inventories were down 2.159 million barrels putting total inventory at 56.608 million barrels 21.214 million more barrels than last year.
DOE inventory called crude oil stocks up 3.55 million barrels putting total stocks at 431.654 million barrels, 14.290 million barrels lest than last year. The bigger build than expected in crude also put selling pressure on crude yesterday.
Gasoline stocks were up 1.2 million barrels putting total stocks at 261.235 million barrels, 3.855 million more than last year.
Distillate stocks were down 1.29 million barrels putting total stocks at 144.747 million barrels, 3.477 million barrels more than last year.