OPEC+ is going to have a meeting on Thursday, August 1st to discuss their current production cuts. Oil prices were down 9% this month while OPEC+ is currently cutting output by 5.86 million barrels per day. This is just under the 6% of the global demand. In June of 2024 OPEC+ agreed to extend cuts of 3.66 million barrels per day. Then they plan to gradually phase out of the cuts of 2.2 million barrels per day over the course of the year, from October 2024 to September 2025.
Crude Oil continued to be bearish yesterday for the second day in a row. This made investors worried about China’s week economy and their shrinking manufacturing activity, along with the fear that OPEC+ will continue to cut their production. However, the market is making a bullish comeback this morning. Oil prices may be influenced by Israel trying to get a ceasefire deal done in Gaza as soon as possible to start a new target, Hezbollah, while the crude oil market was at its lowest since June 5th. A Reuters analyst reported that a ceasefire deal with Hamas could possibly lower crude another $4 to $7 dollars a barrel, which is possibly freezing traders from purchasing or making any deals.
This week’s DOE report is below for your viewing.
If you any questions, or want to lock in any product, please call your Energy Account Manager.
PROPANE
Propane continues to follow crude wherever it goes. So naturally it is bullish today along with crude oil.
Propane reported a nice build of 2.9 million barrels. This is about 1 million barrels above expectations. The biggest portion of this build was in the Gulf Coast, which reported a build of 2.3 million barrels. This was even with exports picking back up from last week but still are not at their max potential. Even with this propane does not seem to be able to break away from crude at this point.
The DOE report for propane is the first chart below. You can see the build was in the Midwest and the Gulf Coast. The total U.S. propane inventory is the second graph below. You can see we are approaching 90 million barrels worth of stored propane, which is the high side of the 5-year average.
If you any questions, or want to lock in any product, please call your Energy Account Manager.
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