US Home Builder Confidence Wanes
July 19, 2022
Crude oil inventories at Cushing, Okla., the delivery point for the NYMEX WTI futures contracts, are at 21.6 million barrels, the lowest seasonal level since 2014. Stocks have not been this low since 2008, when front-month WTI crude prices were at $122 (or $170 per barrel adjusted for inflation).
Energy prices were mixed in yesterday’s trading as RBOB futures were up on the day and ULSD futures were down. Both are still within the recent trading range we have seen over the last nine trading days. The market continues to congest and pause, waiting for the latest headline or news snippet to provide some near-term direction.
Saudi Arabia made a statement that said it would continue to work with OPEC+. “We assess demand, and we work in consultations with other oil producers to make sure that we have adequate supplies,” the country stated. In a separate statement, the Saudis said they base decisions on fundamentals, not speculations, hysteria, or geopolitics.
The National Home Builders Index, a measure of home builder sentiment, plummeted in July to 55. This was seventh straight month the index has dropped. Sentiment fell by 12 points, which is the most significant one-month drop in the index since May 2020. Scores above 50 mean more builders view market conditions as favorable than poor.