The monthly average U.S.-dollar price of West Texas Intermediate (WTI) crude oil advanced by $3.10 (+4.2%) to $77.25/barrel in February. That increase occurred within the context of a marginally stronger U.S. dollar (broad trade-weighted index basis -- goods and services), the lagged impacts of December’s decline of 417,000 barrels per day (b/d) in the amount of petroleum products demanded/supplied (to 20.3 million b/d), and accumulated oil stocks that climbed seasonally higher -- (February 2024 average: 439 million barrels).
Selected
highlights from the 01 March 2024 issue of OilPrice.com’s Oil & Energy
Insider include:
“Oil prices remained stubbornly rangebound in February as signs of a recovering U.S. economy were countered by weaker economic data in both Europe and China,” wrote editor Tom Kool. “Diverging macroeconomic news, with China and Europe continuing to struggle with below-expectations manufacturing activity while the United States is nearing the point of first interest rate cuts, failed to alter the trading patterns of February, keeping Brent around the $83 per barrel mark. The next big thing to happen to the oil markets will be OPEC+ announcing the scrapping or the extension of voluntary production cuts.” As expected, those cuts were extended into 2Q2024.
DoE Solicits Another 3 MMbbls SPR Refill. Having bought 2.95 million barrels of sour crude for
an average price of 77.81 per barrel for June-delivery oil, the US Department
of Energy announced
a new solicitation for 3 million barrels to be delivered in July.
US Natural Gas Output Hits All-Time High in December. Gross US natural gas production from the lower 48 states soared to a record high in December, reaching 118.2 BCf per day, up 7% year-on-year as the Permian, Marcellus, and Utica basins have all continued their steady rise.
The foregoing comments represent the general economic views and analysis of Delphi Advisors, and are provided solely for the purpose of information, instruction and discourse. They do not constitute a solicitation or recommendation regarding any investment.
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