US-Iran nuclear talks continue to progress
May 15, 2025
The DOE inventory report had crude oil inventories up 3.45 million barrels, putting total stocks at 441.830 million and last year they were 457.020. Gasoline supplies were down 1.02 million putting total stocks t 224.706 and last year there were 227.767. Distillates were down 3.16 million putting total supplies at 103.553 and last year there were 116.365.
Implied demand from the DOE report had gas and diesel demand near the 5-year mean for this time of year.
Propane inventories were up more than expected at 2.248 million barrels, putting total stocks at 50.424 and last year there were 61.967 million.
Midwest supplies were up 745,000, putting total stocks at 10.976 and last year they were 15.682.
Gulf Coast supplies were up 1.157 million, putting total stocks at 32.192 million and last year there were 36.993 million.
Propane production remains strong, and exports were also up within the top ten of all time. Production was above 2.8 million bpd for the fourth straight week and the last four weeks are among the largest weekly prodctuion totals on record. The outlook for natural gas drilling is for it to remain strong so propane production should also remain strong. If production stays strong and for whatever reason exports decline it should have an impact on propane prices.
Energy markets are down after a strong rebound that ran into technical resistance. Today the pullback continues as the market hears more good news as President Trump says the US and Iran are near a deal that would end Iran’s nuclear program in return for lifting sanctions on Iran’s crude oil exports. One market analysts thinks this could put 800,000 bpd of crude oil into the global market and that would be bearish crude prices.
Goldman Sachs said that following its analysis of Trump’s social media post, it appears Trump’s preference is for US oil prices to range between $40 and $50 per barrel.