Macquarie Analysts Forecast Minimal Changes in U.S. Crude and Product Balances for Week Ending September 27
Macquarie analysts have issued their forecast for the upcoming week, predicting minimal changes in U.S. crude and product balances. They expect inventories to remain largely unchanged, with only a small increase of 0.1 million barrels. This is a significant adjustment from their previous estimate of a 3.6 million barrels build, following a draw of 4.5 million barrels for the previous week.
Several factors are expected to impact this week’s crude balance, including a slight reduction in refinery crude runs by approximately 0.2 million barrels per day. Net imports are anticipated to stay steady, with only minor fluctuations in exports and imports. The timing of cargo arrivals could introduce volatility into the market.
Despite a weak production report last week, Macquarie predicts a rebound in domestic supply, with an increase of 0.4 million barrels per day. This growth is expected to occur despite ongoing disruptions in the Gulf of Mexico. Additionally, Strategic Petroleum Reserve inventory is projected to see a modest rise of 0.7 million barrels.
On the product side, analysts forecast a draw in distillate stocks of 1.4 million barrels, a slight decline in gasoline inventories by 0.3 million barrels, and stable jet fuel stocks. Implied demand for these products is estimated to be around 14.2 million barrels per day for the upcoming week.
Overall, the Macquarie analysis offers a practical assessment of the current crude and product balances, acknowledging market uncertainties while anticipating stability in the near future.
Analysis: This article provides valuable insights into the expected changes in U.S. crude and product balances for the upcoming week. Understanding these forecasts can help individuals and businesses make informed decisions about their investments in the energy sector, potentially impacting their financial well-being. It is important to stay informed about market trends and expert predictions to navigate the volatile world of finance effectively.