The monthly average U.S.-dollar price of West Texas Intermediate (WTI) crude oil advanced by $4.03 (+5.2%) to $81.28/barrel in March. That increase occurred within the context of a marginally weaker U.S. dollar (broad trade-weighted index basis -- goods and services), the lagged impacts of January’s decline of 706,000 barrels per day (b/d) in the amount of petroleum products demanded/supplied (to 19.6 million b/d), and accumulated oil stocks that climbed seasonally higher -- (March 2024 average: 448 million barrels).
Selected
highlights from the 29 March 2024 issue of OilPrice.com’s Oil &
Energy Insider include:
“The oil markets are increasingly putting their trust into OPEC+ production cuts to remain in place throughout this year, a feat which combined with an improving macroeconomic outlook could bring $90 per barrel sooner than assumed,” wrote editor Michael Kern. “A better-than-expected Q4 for US GDP will most probably consolidate market expectations around a June interest rate cut, leaving behind the demand woes of early 2024.”
US SPR Replenishment Cost Increasingly More. The latest round of strategic petroleum stock
replenishments in the US, totaling 2.8 million barrels in September, has seen
the average price hit $81.32 per barrel, above the $79 per barrel threshold
that the White House mandated for refilling crude SPRs.
Mexico's Crude Output Falls to Lowest Since 1979. Crude production of Mexico's state oil company Pemex fell to its lowest monthly level in 45 years this February, pumping 1.55 million b/d of oil, with the world's most indebted firm coming well below the government-set output target of 1.9 million b/d.
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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