‘Virus Jitters’ Unsettle Global Markets
July 21, 2021
The API inventory report had crude stocks up by 806,000 barrels. The estimate for today’s DOE government update is a decline of 3.790 million barrels. Gasoline stocks were up 3.3 million barrels and the estimate for today is down 1.441 million barrels. The distillates stocks on the API were down 1.2 million barrels and the estimate for today is a build of 818,000 barrels.
The average estimate for today’s propane inventory update is for stocks to build by 1.486 million barrels. The five-year average for this reporting week of the year is a build of 712,000 barrels.
Crude oil and refined fuel product prices rose yesterday along with US equities by more than 1% due to consumer hedgers buying fuel price protection after the massive sell-off the prior day. Helping to support prices was good for US retail chain store sales increases from a year earlier and surveys that showed the market expects the EIA to report another drop in total US crude oil stocks.
“It is hard to see prices staging a comeback unless virus jitters are brought back under control,” said Stephen Brennock of oil broker PVM. “The market is clearly unsettled about the demand outlook. “ Most analysts, however, are not expecting the Delta variant to severely jeopardize the recovery but do expect there to be some challenges along the way.
RBC analysts said the timing of the OPEC meeting is a coincidence rather than a cause as prices fell 8% amid concerns about the COVID-19 delta variant.
Descartes Lads said US gasoline demand increased by 2.2% to 9.57 million BPD in the week ending July 16. It is the first increase after two consecutive weeks of decline.