The API Inventory Report Showed Falling Crude Stocks
July 24th, 2019
The API inventory report release yesterday late afternoon showed that crude oil stocks in the US fell by 11 million barrels. This is more than the outlook for today from the Reuters survey calling for a 4 million barrel decline. Bloomberg is calling for a 4.133 million barrel decline. Gasoline stocks in the API report were up by 4.4 million barrels and the outlook for today is that stocks will be down 730,000 barrels. Bloomberg is estimating gas stocks down 1.224 million barrels. Distillate stocks in the API were up 1.4 million barrels and the outlook for today is a 499,000 built to stocks. Bloomberg is estimating a build of 769,000 barrels. The crude oil stocks at Cushing, Ok were called down 448,000 barrels in the API report.
Senior US trade officials are set to travel to China next Monday for the first high-level face to face trade negotiation between the US and China since back in May. The market took this news that came out late yesterday as a positive and energy prices did move higher.
A top adviser to Iran’s Supreme Leader Ayatollah Ali Khamenei praised Iran’s recent downing of a US drone and the seizing of a British-flagged tanker as turning points in Muslims’ struggle.
The European Union’s foreign policy service said Britain, France, Germany, Russia, and China will meet Iran in Vienna on July 28th to discuss how to save the 2015 nuclear agreement. It will examine issues linked to the implementation of the Joint Commission of the Joint Comprehensive Plan of Action in all it aspects.
S&P Global Platt’s said escalating tensions in the Strait of Hormuz has forced Asian refiners and ship owners to weigh alternative crude sources, deploy contingency plans and increase safety measures for navigation near Iran.
A US Navy ship may have brought down a second Iranian drone in the Strait of Hormuz last week. The head of the US Central Command said that a navy ship had destroyed an Iranian drone after aircraft threatened the vessel.
The International Monetary Fund lowered its forecast for global growth this year and next, warning that more US-China tariffs, auto tariffs or a disorderly Brexit could further slow growth, weaken investment and disrupt supply chains.