Market Pulse
U.S. crude oil inventories increased by 8.5 million barrels for the week ending February 6, according to the EIA, lifting commercial stockpiles to 428.8 million barrels, about 3% below the five-year seasonal average. The build followed the API’s estimate of a 13.4 million-barrel rise. Gasoline inventories rose by 1.2 million barrels, with production averaging 9.1 million barrels per day, while distillate stocks fell by 2.7 million barrels as output edged up to 4.9 million barrels per day. Total products supplied, a proxy for demand, averaged 20.8 million barrels per day over the past four weeks, up 2.4% year over year; gasoline demand averaged 8.3 million barrels per day, while distillate demand declined 3.2% to 4.1 million barrels per day.
Crude prices climbed more than 2% Wednesday morning, with Brent trading at $69.94 per barrel and WTI at $65.05, supported by geopolitical tensions between the U.S. and Iran, overseas inventory draws, and stronger-than-expected U.S. economic data. January nonfarm payrolls rose by 130,000, well above forecasts, and the unemployment rate edged down to 4.3%. Meanwhile, OPEC projects global demand will decline by 400,000 barrels per day in the second quarter.
Fundamentals
EIA’s Weekly Petroleum Inventory in MM’s BBLS
| Commodity | US Inventory | Change | 3 Yr Ave | CURRENT MARKETS |
|---|---|---|---|---|
| Crude Oil | 429.1 | 8.5 | 424 | WTI Crude: 1.11 |
| Gasoline | 257.7 | 1.2 | 225 | Heating Oil: 0.0598 |
| Distallates | 124.6 | -2.7 | 118 | RBOB: 0.0304 |
| Commodity | US Inventory | Change | Midwest Invent | Change |
|---|---|---|---|---|
| Propane | 77.3 | -5.4 | 15.7 | -1.6 |
Propane
Propane prices continue to face downward pressure, declining at times even as crude oil prices strengthened. The propane-to-crude ratio remains subdued, with Conway falling slightly below 40%.
Looking ahead, the February weather outlook has shifted toward above-average temperatures across much of the United States. Meanwhile, inventory levels remain at record highs, and production is steadily recovering following the late-January winter storms.
Funny
Quote
“The battles that count aren’t the ones for gold medals. The struggles within yourself—the invisible battles inside all of us—that’s where it’s at.
–Jesse Owens
Disclaimer: The data, information and related graphics (collectively, “Information”) is for general information use only and is compiled from sources believed to be reliable. Dale Petroleum Company does not guarantee its accuracy or completeness, nor does DPC assume any liability for any inaccurate or incomplete information. The Information is not intended to be a research report nor an analysis of a company and it should not be relied upon for making investment decisions. The information is subject to change without notice, is for general information only and is not intended as any offer or solicitation with respect to the purchase or sale of any financial instrument or as personal investment advice.