Markets Await OPEC+ Production Decisions
November 3, 2021
The API report from yesterday had crude stocks up 3.6 million barrels. Gasoline stocks were down 552,000 barrels and distillate stocks were up 573,000 barrels. The crude stocks at Cushing, Ok were down 882,000 barrels. The energy markets did move lower after the release of the API stats yesterday and the market is trading lower today to start.
The bears still need to break this market down below key levels of support and until this can be done any pullback or sideways trading is nothing more than a correction or a pause before this market tries to trade higher. Call the $80 to $78 the key support zone for WTI crude oil. Until that level can be decisively broken this market will at a minimum congest for a longer time.
There is uncertainty in the market over what OPEC + will do later this week with their production and how the US inventory report comes on out crude stocks this morning. There is also the news that the Biden administration is talking about a release of oil from the SPR to help ease prices. Also, the market is nervous about the Fed and what they will do with respect to tapering. This fear is adding to today’s selling. Overall, fundamentally the facts are supportive to the market. Low supplies, good demand, and the outlook for that not to change any time soon is supportive.
Propane supplies are estimated to build by 1.1 million barrels in today’s inventory report.
DOE estimated from the Bloomberg survey are for crude stocks to be up 1.696 million barrels. Gasoline socks to be down 1.239 million barrels and distillates to be down 870,000 barrels.