07.24.2024 Energy
Jul 24, 2024
7-24-24
In this week’s EIA inventory report we learned crude oil inventories dropped 3.7MB, diesel dropped 2.8MB, gasoline followed suit with a 5.6MB drop. Propane on the other hand showed an increase of 1.8MB. Decent demand and good exports are the primary drivers behind the draws on inventory. All in all, Energy product stockpiles are in a nice place, as we enter a lower demand time of year, I do not see a major price run up. However, keep in mind that guys in my chair have a few things to monitor every day that can create major swings in the market.
Thank you for reading and thank you for the business you grant CRC!
Bill Pelzel
CRC Energy Manager
In this week’s EIA inventory report we learned crude oil inventories dropped 3.7MB, diesel dropped 2.8MB, gasoline followed suit with a 5.6MB drop. Propane on the other hand showed an increase of 1.8MB. Decent demand and good exports are the primary drivers behind the draws on inventory. All in all, Energy product stockpiles are in a nice place, as we enter a lower demand time of year, I do not see a major price run up. However, keep in mind that guys in my chair have a few things to monitor every day that can create major swings in the market.
- Possible ceasefire in Gaza
- Potential of interest rate cuts
- Ukraine vs Russia
- Hurricane season and many more items.
- Supply & demand do not control the market and the market will do the exact opposite of what we formerly expected.
- The Energy sector has gone global, so local factors sometimes have little play in the market overall.
- Regulations come quicker than ever imagined and change is hard to adapt to.
Thank you for reading and thank you for the business you grant CRC!
Bill Pelzel
CRC Energy Manager