Department of Energy Report Insights November 14, 2019
Sponsored By Fundamental Analytics
Crude Oil Stocks Build, Greater than Expectations
The Department of Energy (DOE) reported Total Crude Oil Inventories increased by 2.2 million barrels to 449.0 million barrels for the week ending November 8, 2019, while the expectations average was for a 1.6 million barrel build.
- Total hydrocarbon supplies decreased by 5.9 million barrels to 1,274 million barrels.
- Crude Oil Production increased by 200,000 barrels per day to 12.9 million barrels per day.
- Total Crude Imports decreased by 300,000 barrels per day to 5.8 million barrels per day.
- Total Crude Exports increased by 262,000 barrels per day to 2.6 million barrels per day.
- Total Refinery Crude Runs were up 200,000 barrels per day at 15.92 million barrels per day.
The DOE report was bearish for crude oil prices and prices fell throughout the trading day after the report was released. The market sentiment is bearish as the US-China trade war concerns continue to linger. President Trump’s recent threat to raise tariffs on Chinese goods “very substantially” is creating doubts that the Phase One trade agreement will be completed. Concerns are also starting to emerge about OPEC’s commitment to deeper production cuts, but so far these concerns have been tempered by lower expectations for US production growth next year.