Energy traders should be able to accept higher oil prices. Oil demand is coming back and expectations are high that China’s demand is about to skyrocket. WTI crude rejected an EIA crude crude oil report, which revealed a shockingly large build. Although refinery shut downs are well-known, the 18.96million build was far greater than expected. While some West Coast hurricanes have limited gasoline demand, distillate demand is up.
Crude exports are slumping, posting the largest decline since May 2021, but some of that could be attributed to year-end buying. While production edged higher, US output is expected to remain at the same levels.
Two-hour groundings will provide a slight boost in jet fuel demand but travel trends are expected continue to improve. WTI is moving higher, and it may not take long to get WTI back up above $80 per barrel.
The December inflation report is not expected to have an impact on gold prices. Fed rate rise expectations lean towards a 25bp rate hike at the February 1.st FOMC meeting, March 22nd Gathering appears to be a tossup among another small…