Rystad Energy Estimates US Crude Production at 13M BPD
September 27, 2023
The consumer confidence index slipped to 103.0 this month, down from 108.7 the previous month and down from analysts’ expectations of 105.8. Consumers also indicated concerns about higher interest rates and the current political climate. The decline in consumer confidence was seen across all age groups and particularly in those with income of $50K and more.
The energy market traded on both sides yesterday as prices were down early trying to relieve some of the overbought condition. Prices did firm up during the day but overall, it was a mixed day and these markets are likely to consolidate here for a bit before attempting another run to the upside.
The API had called crude oil up 1.586 million barrels, gasoline down 70,000 barrels and distillate down 1.698 million barrels.
Traders and analysts said that US crude oil stocks at Cushing, OK are at their lowest level in 14 months due to strong refining and export demand, prompting concerns about the quality of the remaining oil and the potential to fall below minimum operating levels. This situation will be part of the reason crude oil has a chance to trade $100 dollars. This situation along with a hurricane scare for Gulf refineries or something like that would be the thing to make crude test that $100 dollar area.
This is a very interesting report from Rystad Energy. They are expecting a record of more than 13 million bpd in US oil production, the highest level of any country in the world and more than double the level of a decade ago. But despite the increased production prices have not eased.
The energy market continues to wrestle with concerns of tight supplies against an uncertain economic outlook.
The estimate for today’s propane report is that supplies will be up 2.06 million barrels.
Bloomberg survey result for today’s DOE inventory report is crude down 100,000 barrels, gasoline down 600,000 and distillates down 1.075 million barrels.