First things first. All that hand-wringing over inflation? The price of WTI fell today because the dollar got stronger.
Solar panels: The other day -- two days ago, in fact -- I wrote:
I do know that for the first time in years solar panels are increasing in price. From China. I wonder what that's all about? But I digress.
Hold that thought.
I don't know if folks are paying attention, but things are starting to "break" right for Saudi Arabia:
- IEA says all "new" exploration needs to cease immediately;
- Saudi would be exempt; the country doesn't do "new" exploration;
- XOM shareholders vote for two "activist" directors;
- Shell ordered to cut emissions by state court;
- Chevron shareholders vote in favor of cutting emissions including from the fuels they produce;
On the other hand, more and more evidence that without (more) US offshore exploration and production, supply won't meet demand.
Snowflake: announced today it is moving its executive office from California to ... drum roll ... to Montana. Bozeman, Montana.
Amazon: buys MGM catalogue. Next move? Physical pharmacies / corner drugstores.
Crypto-mining: how much energy does it take? Iran is banning all crypto-mining during the hot summer months.
Gasoline demand: link here:
- apparently this chart that gets reproduced every week is based on the amount of gasoline delivered to service stations; it is not the amount of gasoline actually bought by retail consumers (like you and me);
- so, although the chart looks "bullish," it's simply service stations simply replenishing the run on gasoline from the Colonial Pipeline shutdown;
- we'll have a better idea of what's really going on next week and the week after that when Memorial Day driving is included
Weekly EIA petroleum report, link here: in a word, "bullish" as weekly reports go.
caveat: all that "5-year-average" stuff is a bit of smoke and mirrors; the last five years have been anything but "average."
- US commercial crude oil inventories decreased by 1.7 million bbls from the previous week;
- US commercial crude oil in storage now stands 2% below the five-year average (of course, much of this was the pendulum swinging the other way when the Colonial Pipeline got back to normal)
- refiners are operating at 87% of their operable capacity; unchanged for weeks;
- US crude oil imports: down slightly last week; perhaps a reflection of the Colonial Pipeline overhang;
- total motor gasoline inventories decreased by 1.7 million bbls; about 3% below the five-year average;
- distillate fuel inventories decreased by 3.0 million bbls; almost 8% below the five-year average;
- jet fuel supplied double that of a year ago (up 109.6% compared to a year ago
Solar panels. Are you still holding that thought (from the first entry above)? After noting in passing the higher cost of Chinese solar panels, this story popped up over at oilprice.com.
On gasoline demand, I believe that demand is higher, looking at the graph I do not see a large drop in the deliveries when the Colonial Pipeline was shut down.
ReplyDeleteTotal inventories of crude oil and distillates down by 7.7mm, SPR down by 1.6mm, net imports 1.4mm. Domestic production flat at 11mm/day.
Demand for last week exceeded domestic supply by 10.7mm barrels.
I flip-flopped while posting this note. It was someone else who suggested the increase in gasoline demand was due to overhang from the Colonial Pipeline shutdown; I accepted that and posted as such.
DeleteThen I saw the three weeks of weekly data and had second thoughts. As such, I tend to agree with you.
The next two weeks will be very, very interesting coming out of Memorial Day weekend.