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