US Meets with World Leaders to Discuss Further Russian Sanctions
March 24, 2022
The DOE inventory report said that crude oil inventories are down 2.51 million barrels and the crude stockpiles at Cushing, Okla., are up 1.235 million barrels. Gasoline inventories are down 2.95 million barrels, and distillates were down 2.07 million barrels.
Total crude stocks are now 413.399 million, and last year there were 502.711 million. The 3-year average is 466.785 million. The three-year low is 442.283, so we are 28 million below that level.
Gasoline total stocks are now at 238.043 million and last year there were 232.279 million and the 3-year average is 236.727 million. Gas is in the best shape inventory-wise compared to crude and distillates.
Distillate total stocks are now at 112.135 million barrels and last year, they were 141.553 million, and the 3-year average is 132.051 million. The year average low is 124.44, and we are 12 million below that level. Diesel is in low supply, and if demand continues to stay strong, it might become an issue. But the market keeps looking for higher prices to slow demand at some price level.
Propane inventories were up 256,000 barrels putting total stocks at 33.564 million, and last year they were at 41.269 million, and the 5-year average is 43.842 million. The market is behind last year and the 5-year average by 7 and 10 million barrels, respectively. We are entering the time of year when supplies are traditionally built in preparation for next winter. The market will be watching to see how this progresses and judging if the market can get too “normal,” 80 to 100 million barrels, or is there now a “new normal.”
The US will meet with other world leaders in Brussels today to discuss potential additional sanctions on Russia. The group also will discuss how to reduce EU dependence on Russian energy.
Russia has ordered that all those buying Russian energy will have to pay for it in Rubles, not Euros or dollars. This is not an easy switch, and some have said it will violate contracts already in place. We will see how this progresses, but some switching is likely.