Market Pulse
U.S. crude oil inventories rose by 6.9 million barrels for the week ending March 20, according to the U.S. Energy Information Administration (EIA), bringing total commercial stockpiles to 456.2 million barrels, slightly above the five-year seasonal average. This increase exceeds the 2.3-million-barrel build reported earlier by the American Petroleum Institute. Despite geopolitical concerns affecting tanker traffic in the Strait of Hormuz, crude prices declined in early Wednesday trading, with Brent at $100.20 per barrel (down 4.15% on the day and $9 week over week) and WTI at $88.63 per barrel (down 4.03%). Gasoline inventories fell by 2.6 million barrels amid strong pre-price increase demand, though builds are expected in the coming weeks, while distillate stocks rose by 3.0 million barrels as production increased. Overall U.S. petroleum demand averaged 20.7 million barrels per day over the past four weeks, up 2.4% year over year, with gasoline and distillate demand showing modest gains. Diesel and jet fuel inventories increased modestly as demand softened, and propane stocks rose slightly, remaining significantly above last year’s levels due in part to limited export activity despite supply disruptions in Asia.
Fundamentals
EIA’s Weekly Petroleum Inventory in MM’s BBLS
| Commodity | US Inventory | Change | 3 Yr Ave | CURRENT MARKETS |
|---|---|---|---|---|
| Crude Oil | 456.2 | 6.9 | 454 | WTI Crude: -2.99 |
| Gasoline | 241.4 | -2.6 | 234 | Heating Oil: -0.3584 |
| Distallates | 119.9 | 3.0 | 112 | RBOB: -0.1425 |
| Commodity | US Inventory | Change | Midwest Invent | Change |
|---|---|---|---|---|
| Propane | 73.0 | 0.5 | 14.5 | 0.5 |
Propane
Propane prices mirrored the upward trend in crude oil on Tuesday. Sustained demand along the coast continues to support a premium for propane, further bolstered by rising export levels. Exports are projected to exceed 2 million barrels per day, representing a modest increase from last week’s figures. Additionally, propane supply in the Northeast is expected to grow, driven by colder weather and freeze-offs in the Appalachian region.
Iran War
Efforts to end the conflict involving Iran remain at an impasse despite an emerging diplomatic framework led by the United States, which has proposed a ceasefire tied to sweeping concessions from Tehran. The U.S. plan calls for Iran to halt uranium enrichment, dismantle key elements of its nuclear program, relinquish enriched material stockpiles, curb ballistic missile development, and end support for regional proxy groups, while also ensuring the free flow of shipping through the Strait of Hormuz. In exchange, Washington has indicated it would lift economic sanctions, reduce military pressure, and potentially support a strictly monitored civilian nuclear program. Iran, however, has rejected the proposal, arguing that the terms are overly restrictive and one-sided. Tehran is instead demanding an immediate cessation of U.S. and allied military actions, financial reparations for war-related damages, firm security guarantees against future attacks, and recognition of its regional influence, particularly over strategic waterways. It has also made clear it will not fully abandon its nuclear enrichment activities or missile capabilities, viewing them as essential to national defense. The primary obstacle remains a fundamental disagreement over sequencing and trust: the United States is seeking upfront concessions before granting relief, while Iran insists that relief, compensation, and guarantees must come first. As a result, negotiations continue indirectly through intermediaries, but without a significant shift from either side, prospects for a near-term resolution remain limited.
Funny
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.