Trump Delays Newest Set of Tariffs
August 15th, 2019
The DOE reported that crude oil stocks were up 1.58 million barrels when the market was expecting a draw of over 2 million barrels. Cushing, Ok crude oil stocks were down 2.54 million barrels. Gasoline stocks were down 1.412 million barrels and distillates stocks were down 1.938 million barrels.
Propane stocks showed a bigger build than expected at build at 3.2 million barrels. The Midwest stocks only increased by 200,000 barrels and the Gulf increased by 2.5 million barrels. This led some to suggest that product is being sent from Conway to Mt Belvieu in hopes of more export leaving the US.
The big rally on the news that tariffs on some Chinese item were being delayed was hit with a dose of reality yesterday and the market gave back most of the gains from the prior day. ULSD was the one market that was a bit stubborn and tried to stay up as best it could on a big down day.
According to the EIA US gasoline demand increased by 281,000 bpd to a record 9.93 million bpd in the week ending August 9th.
Here this morning Reuters is reporting that the United States has applied to seize the Iranian Grace 1 tanker in Gibraltar, commandeered by British Royal Marines in the Mediterranean last month, complicating a possible tanker swap between Britain and the Islamic Republic.
There is a lot of news about the yield curve being inverted and that being an early indicator of a recession. That seems to be the strongest voice but there are those out there that remind us that there is another side to the story and this is not always the case. But with the current economic outlook negative and other negative data that is the prevailing story for now.
Volatility should remain high as there are many factors that could impact this market and traders are keeping a close watch on all of them.