The monthly average U.S.-dollar price of West Texas Intermediate (WTI) crude oil climbed by $4.07 (+5.0%) to $85.35/barrel in April. That increase occurred within the context of a stronger U.S. dollar (broad trade-weighted index basis -- goods and services), the lagged impacts of February’s increase of 362,000 barrels per day (b/d) in the amount of petroleum products demanded/supplied (to 19.9 million b/d), and accumulated oil stocks that climbed seasonally higher on a monthly average basis -- (April 2024 average: 458 million barrels).
Selected
highlights from the 3 May 2024 issue of OilPrice.com’s Oil &
Energy Insider include:
“The disappointment of the money markets with yet another hotter-than-expected set of US inflation data, aggravated by higher crude inventories and slackening geopolitical risk, has triggered a notable drop in oil prices, with both WTI and Brent shedding more than $5 per barrel since last week,” OilPrice.com’s Michael Kern wrote. “Falling middle distillate and gasoline cracks have not boosted the sentiment either, so only a high-impact supply disruption could break the current bearish streak.”
TMX Starts Commercial Operations. After 12 years of waiting, Canada’s $23 billion Trans Mountain
Expansion pipeline started
operations this week, with the first-ever cargo to load at the Westridge
Terminal in two weeks and deliver a Western Access Blend cargo to China.
EPA Rules Threaten US Power Grid Reliability. Peabody Energy, the US’ largest producer of coal, warned
that the EPA has overstepped its authority with its target of cutting GHG
emissions from coal by 90% by 2039, shortly after some power plants mulled a
federal lawsuit.
Venezuela Exports Crack Under Pressure. Venezuela’s oil exports plunged
a whopping 38% month-over-month to 545,000 b/d as demand subsided for the
country’s heavy barrels on the heels of US sanctions, prompting at least six
VLCCs to leave Venezuela empty in recent weeks.
US Senate Bans Russian Uranium Imports. The US Senate unanimously passed
a bill banning the imports of Russian uranium, sending spot U308 uranium prices
to $92 per pound again, also unlocking $2.7 billion in government support for
domestic uranium mining in the United States.
Baltimore Bridge Repair to Cost $2 Billion. The Maryland Department of Transportation said the state expects the rebuild of the Francis Scott Key Bridge, wrecked after the Dali cargo ship crashed into it on March 26, to cost $1.7-1.9 billion, with completion anticipated by fall 2028.
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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