US Consumer Confidence Falls in October
October 26, 2022
The API had crude oil stocks up 4.5 million barrels, gasoline stocks down 2.3 million barrels and distillates up 600,000 barrels.
The average estimates from the Bloomberg survey are calling crude stocks up 463,000 barrels. gasoline stocks down 1.034 million barrels and distillates down 647,000 barrels.
Energy prices rallied yesterday on the back of the US dollar index being down 0.9% and the IEA warning of the first global energy crisis.
The US Conference Board reported yesterday that consumer confidence for October fell much more than expected and lower than the range of expectations. This show the concerns about recession are up.
Saudi Arabia’s Energy Minister, Price Abdulaziz bin Salman, said that some were using their emergency stocks and using it as a mechanism to manipulate markets when its purpose should be to mitigate any shortages of supply. He said, “it is my duty to make clear that losing emergency stocks may be painful in the months to come.”
The sanctions starting December 5 with will require vessels transporting Russian crude oil that is sold above a predetermined price cap will be prohibited from obtaining European shipping, bunkering, insurance, finance. Most expect China and India to continue to buy Russian oil and use their own fleets. If they do not, Russia will need to find alternative markets and ways to secure insurance and tanker capacity for those that continue to use western tankers and services.
Propane inventories are expected to be up 586,000 barrels in this week inventory update.