Larger-Than-Expected 5.1 Million Barrel Draw
The larger-than-expected 5.1 million barrel draw in crude oil inventories reported by the Department of Energy failed to impress yesterday leaving WTI futures with a modest five cent per barrel gain. Gasoline and diesel futures were up slightly as well, despite the seemingly bearish trifecta of rising stockpiles, increased refinery runs, and dropping demand.
Without any news from OPEC+, Iran, or on demand recovery, energy futures seem content to drift higher this morning, looking to end the week with gains. Even if Washington and Tehran come to a surprise agreement, there is much debate on whether that would be bullish or bearish for oil prices.
Using some very fancy maths the EIA has calculated the total U.S. energy consumption for last year has dropped 7% from 2019. While this may not shock anyone who had to dust off their steering wheels in the past few months, the interesting note was the only energy source that saw an increase in demand were renewables. Prompt month corn and soy oil futures are up over 100% YOY.
The Bureau of Labor Statistics reported the U.S. added 560k jobs in May, dropping the unemployment rate to 5.8%, the lowest it’s been since everything shut down in March 2020. While the jobs number was slightly below economists’ estimates, the generally positive news bumped equities futures this morning; it seems we are heading in the right direction.