Wall Street Warns Outlook for 2023 US Economy Looks Grim
December 7, 2022
The API inventory report put out yesterday afternoon said that crude oil stocks were down 6.4 million barrels and the average estimate for today’s DOE report from the Bloomberg survey is calling for a draw of 2.989 million barrels. The API had gasoline stocks up 5.9 million barrels and the estimate for today is a build of 1.775 million barrels. Distillates on the API were up 3.6 and the estimate for today is a build of 1.655 million.
It appears that Wall Street is finally calling for some poor performances from stocks and the economy and that news has put selling pressure on commodities as that negative news have overshadowed the positive demand outlook from China as they ease some Covid restrictions.
Bloomberg reports: Wall Street is loudly warning that next year’s outlook for the US economy and stocks is grim. Goldman Sachs CEO David Solomon cautioned that the economy faces “bumpy times ahead.” JP Morgan CEO Jamie Dimon expressed a grimmer view that this would a “mild to hard recession.” Morgan Stanley Wealth Management’s Lisa Shalett said that corporations are facing a “rude awakening” on earnings. Layoffs are also adding to the gloom, with Morgan Stanley announcing it will reduce its global workforce by about 1,600 ahead of a potential recession, while Bank of America said it was slowing hiring.
Also helping the selloff in oil was the EIA’s Monthly Short Term Energy Outlook in which they lowered their crude oil forecast for 2023 by $3.00, they raised their world oil supply forecast by 388,654 bpd for 2023 and lowered their world oil consumption forecasts by 164,628 bpd.