Image Source: Pixabay

Crude prices slipped lower today (along with everything else around 10amET ish), but never recovered (unlike stocks), as traders weighed prospects for a ceasefire in Gaza against ongoing risks to oil supplies in the Middle East.

"The Middle East remains a powder keg, but in terms of oil production, it has yet to explode," Stephen Innes, managing partner at SPI Asset Management, told MarketWatch.

"While the potential for escalation is often discussed, it's in no one's best interest, despite recent attacks such as the one on the Iranian consulate."

Additionally,a s MT Newswires reports, in its influential monthly Short-Term Energy Outlook, the Energy Information Administration lowered its 2024 demand-growth forecast to 0.95-million barrels per day, even as it raised its estimate for actual demand to 102.65-million bpd from its March estimate of 102.17-million bpd after revising its estimate of 2022 demand up by 0.8-million bpd.

"Although the revisions to historical consumption resulted in more forecast petroleum consumption, they also decreased demand growth in 2024 compared with our previous STEO," the agency noted.

Expectations ahead of the API print were for a third straight weekly build in crude stocks (though only marginal)...

API

• Crude +3.03mm (+800k exp)

• Cushing +124k

• Gasoline -609k (-1.4mm exp)

• Distillates +120k (-600k exp)

Crude stocks rose for the third straight week but gasoline stocks drew down once again...

Source: Bloomberg

WTI was hovering around $85.35 ahead of the API print and inched lower on the build...

Meanwhile, pump-prices continue to rise, as we expected, tracking wholesale gasoline prices higher...

Source: Bloomberg

...not exactly painting an optimistic picture for tomorrow's CPI print with the highest pump-prices in six-months...

Source: Bloomberg

But hey, Bostic said everything would be fine, right? Right!

More By This Author: