US GDP contracts
May 1, 2025
The US GDP for Quarter 1 was a disappointment and helped to push energy prices lower. Q1 GDP was down 0.3% and was estimated at up 0.3%. The final economy reading for Q4 2024 was 2.4%, which was a significant drop. This report put pressure on prices and then it was reported by Reuters that several unnamed sources said Saudi Arabia briefed allies and industry experts that they can sustain a prolonged period of low oil prices. This news on top of the GDP data pushed prices lower yesterday with a big selloff.
Today prices were lower but are trying to rally back to near unchanged currently. The recession concerns and the outlook for lower demand has been weighing on these markets but if prices bounce higher from here it will begin to look like these markets are establishing a trading range so these markets can congest and wait on a clearer picture.
Kremlin spokesman, Dmitry Peskov, said Russia’s duty is to win the conflict in Ukraine.
The DOE inventory report had crude stocks down 2.696 million barrels, gasoline stocks down 4.003 million barrels, and distillates up 937,000 barrels.
Crude production still good at 13.465 million bpd.
Propane inventories were up 576,000 barrels to a total of 47.206 million. Midwest inventories were up 262,000 barrels to a total of 10.035 million. Gulf Coast Inventories down 7,000 barrels to a total of 30.522.