US Seeks to Buy 6M Barrels for Strategic Petroleum Reserve
October 23, 2023
The Baker Hughes Rig Count was up one to 502 total oil rigs. Last year at this time there were 570 oil rigs.
Group ULSD basis did jump up early in the day on Friday another ten cents but eased off that high as the day wore on. Crude oil, diesel, and gasoline all started out higher and eased back as well as traders got themselves covered for the weekend.
Prices ease back on Friday and are pretty flat to start out today as no new geopolitical activities transpired over the weekend. Israel who has been threatening a ground attack has held off so far giving hope that negotiations are still possible, and the conflict will not spill over to other countries being involved. This is a very fluid situation, and the market will continue to watch for any new news or developments.
On Thursday, the US Department of Energy said Washington is seeking to buy 6 million barrels of crude oil for delivery to the SPR in December and January.
JP Morgan said it sees a largely balanced oil market in the fourth quarter, with Brent ending the year at $86 per barrel.