Weak consumer confidence spooks market
February 26, 2025
The API inventory estimates came in as follows, crude oil down 640,000 barrels, gasoline was up 537,000, and distillates down 1.11 million.
The average estimates for today’s DOE inventory update are for crude to be up 2.605 million, gasoline down 849,000 and distillates down 1.488 million.
The average estimate for today’s propane inventory update is for supplies to be down 3.7 million barrels.
Crude oil prices closed at the lowest price of the year, falling 2.5%. The market appears to focus back on possible economic and energy demand being lower due to US tariffs expected on US imports from Canada and Mexico at 25% except for energy products at 10%. The tariffs are expected to start on March 4th. Worse than expected US economic data also pushed prices lower. The US imports the largest amount of heavy sour crude oil from Canada (about 4.1 million bpd).
BP said it would increase annual oi and gas investment to $10 billion, returning the focus to fossil fuels, as part of CEO Murray Auchincloss’ efforts to boost returns and improve financial performance.
The weak consumer confidence number helped the selloff in energy prices yesterday. The number came in lower than expectations at 98.3 compared to last week’s 104.1 and a survey estimate of 102.5