US Debt Ceiling Negotiations Continue
May 23, 2023
Talks over the US debt ceiling ended yesterday without resolution but President Joe Biden and House Speaker Kevin McCarthy both called the meeting yesterday productive and have agreed to keep meeting to get this resolved.
There are several comments this morning that with the beginning of the summer driving season just around the corner that crude demand will go up and support prices as well as offer support to RBOB as summer demand begin in earnest.
The International Energy Agency stated in its monthly report that they expected in the second half of this year there to be a supply deficit of 2 million bpd. This was tossed around in the news and offered some support to prices.
The market continues to trade in a range we have seen in the last few weeks. This is very likely to continue this same path as the market waits on the debt ceiling talks and other data that could move the market. Crude is getting some support today from comments by Saudi Energy Minister ahead of the upcoming OPRC+ meeting. He said that oil speculators short the market better be careful.
Analysts from Goldman Sachs and JP Morgan said voluntary OPEC+ production cuts have taken effect from May. A JP Morgan analyst said, “Latest export data suggest that the eight OPEC+ producers are delivering on their pledges to cut supply.”