• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 4 days How Far Have We Really Gotten With Alternative Energy
Editorial Dept

Editorial Dept

More Info

Premium Content

Record U.S. Crude Exports Push Oil Prices Higher

December WTI crude oil futures finished higher on Thursday, putting the market in a position to close higher for the week. The bullish price action was fueled by a number of factors including optimism over record U.S. crude exports, signs that recession fears are fading and a weaker U.S. Dollar. Helping to put a cap on gains were worries over demand from China.

Longer-term traders noted that the start of OPEC+ production cuts and the European Union’s embargo on Russian crude oil were also underpinning prices all week.

US Crude Exports Surge to Record – EIA

U.S. crude oil stockpiles rose in the most recent week, even as the volume of exports hit an all-time record, the Energy Information Administration reported on Wednesday.

Crude inventories rose by 2.6 million barrels in the week to Oct 21 to 439.9 million barrels, nearly triple analysts’ forecasts in a Reuters poll for a 1-million-barrel rise.

The big surprise that drove prices higher, however, was the news that crude exports surged to a weekly record of 5.1 million barrels per day, cutting net crude imports to just over 1 million bpd, also a record.

Crude Supported after GDP Report Showed Some Signs of Inflation Easing

Crude oil was also underpinned on Thursday after the latest U.S. GDP report showed some signs that inflationary pressures could be easing.

The report for U.S. Gross Domestic Product showed 2.6% economic growth in the third quarter. Economists…

Leave a comment
  • Eric Johnson on October 30 2022 said:
    "Sentiment continued to improve on Thursday with the release of a stronger-than-expected U.S. GDP report and signs that inflation may be easing. Moreover, the market also seemed to be pleased that the Fed could begin easing its aggressive tightening policy."

    Whoa! How does stronger GDP negatively affect inflation? A stronger GDP will drive inflation higher, causing the fed to have to raise the overnight rate even more. And make no mistake, if that number is accurate you're kidding yourself if you think Powell is going to pivot by the end of the year. Those interest rate hikes will be going to the moon!

    All that aside, this new GDP report just before the election is suspect. If you recall under the Obama administration, numbers would always come out high and then be revised down a few weeks later. Dems are never sincere. We are most likely right around 0%, but that won't come out until after the election. Fed will then most likely trim hikes to 50 basis points through 2023 and then halve it to 25 through 2024.

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News