The focus on tomorrow's EIA weekly oil inventories will remain on the demand side of the equation as there is concern about signs of unusually low gasoline consumption.
Meanwhile, the monthly report is out and sees:
- 2022 demand to rise 560k bpd compared to 700k bpd in last month's report
- 2022 supply to rise 610k bps vs 720k bpd in last month's report
- 2023 demand to rise 410k bps vs 320k bpd in last month's report
- 2023 supply to rise 840k bpd vs 860k bpd in last month's report
- 2023 world oil demand to rise 2.06m bpd vs 2.00m bpd in last month's report
I've never seen any value in this report. It's guesswork, the same as any private forecast and the track record isn't that good. What worries me a bit is falling US supply estimates both this year and next year. The Permian is a great basin but other US oil plays are struggling to generate investment due to high decline rates.
In terms of spot, crude is now lower by 40 cents on the day but that selling came before this report.
