US Oil Inventories Drop By A Whopping Seven Million Bbls; This Is Before Hurricane Ida; Dollar Weakens -- And, Yet, WTI Drops In Price -- September 1, 2021

Wow, wow, wow: US oil inventories, 26.5 days. This is the first time in a very long time, the "days of supply" has dropped below 27 days, and this was very, very fast: the previous week was 27.0. days of supply. We have to go back to late 2019 / early 2020 (pre-pandemic), to see an inventory of less than 26.5 days. Link here.

US oil demand: nearly 23 million bbls per day. Link here.  Back in May, 2021: 20.094 million bbls per day; now, nearly 23 million bbls per day.

• in round numbers, the US consumes 20 million bopd, link here.
  

• from Bloomberg, July 30, 2021
• demand back faster than expected
• US demand provides signal of return from 2020 travel slump
• consumption is so strong that the federal EIA pegged May's demand for US oil products at 20.094 million bbls per day; or almost seven percent higher than its original estimate
  

Link here: natural gas. 

Link here to Brian Sullivan at CNBC:

• US oil demand is soaring
• US oil production is declining
• the Keystone XL carrying oil from Canada to US refineries killed by Resident Biden
• OPEC and Russia now running the global oil and gas show

While total US demand recovered in June to within 0.5% of pre-covid levels, crude production remains much lower. According to the @EIAgov , crude output in June declined month-on-month from May, at 11.3m b/d (-7.1% below June 19). Total oil liquids was virtually flat m-on-m.

Monthly EIA petroleum report, link here:

• US crude oil inventories decreased by a whopping 7.2 million bbls (and this was before Hurricane Ida);
• US crude oil inventories now stand at 425.4 million bbls, 6% below the five-year average
• refineries operated at 91.3% of their operable capacity, yawn (but this is before Hurricane Ida)
• US crude oil imports average 6.3 million bpd; up by 183,000 bpd, yawn; this is 13.9% more than the previous four-week period; US crude oil imports average 6.3 million bpd over the past four weeks;
• propane inventories increased by 0.5 million bbls last week; 20% below the five-year average;
• distillate fuel inventories decreased by 1.7 million bbls last week; inventories are 9% below the five-year average;
• jet fuel product supplied was up 51.7% compared with the same four-week period last year

WTI: after the report was released, WTI dropped 0.41%, dropped 28 cents, is now trading at $68.22. 

DXY: 92.430, down 0.210.

Crude oil imports:

Crude Oil Imports
Week (week-over-week)	Date of Report	Raw Data, millions of bbls	Change (millions of bbls)	Four-week period comparison
Week 17	July 8, 2020	7.4	1.400	-8.500%
Week 18	July 15, 2020	7.5	-1.800	-10.200%
Week 19	July 22, 2020	5.9	0.373	-13.500%
Week 20	July 29, 2020	5.1	-0.800	-13.600%
Week 21	August 5, 2020	6.0	0.900	-18.100%
Week 67	June 23, 2021	6.9	0.197	-1.00%
Week 68	June 30, 2021	6.4	-0.500	2.80%
Week 69	July 8, 2021	5.9	-0.500	-2.20%
Week 70	July 14, 2021	6.2	0.347	-0.10%
Week 71	July 21, 2021	7.1	0.900	2.90%
Week 72	July 28, 2021	6.5	-0.600	6.90%
Week 73	August 4, 2021	6.4	-0.075	15.80%
Week 74	August 11, 2021	6.5	-0.036	16.30%
Week 75	August 18, 2021	6.4	-0.064	14.10%
Week 76	August 25, 2021	6.2	-0.193	8.80%
Week 77	September 1, 2021	6.3	-0.183	13.90%