"Focus On Fracking" has posted, a bit earlier than usual. 😊
The lede:
- oil prices:
- oil prices hit a 7 year high as US oil supplies neared a 10 year low;
- Strategic Petroleum Reserve fell to another 19 year low;
- gasoline demand:
- gasoline inventory increase over 3 weeks is largest on record,
- gasoline imports at a 53 week low,
- gasoline exports at an 82 week low;
- global oil inventory:
- December global oil shortage was 1,240,000 barrels per day as OPEC output was 625,000 barrels per day short of quota;
- DUCs:
- DUCs are lowest since February 2014;
- DUC backlog of 5.1 months is lowest since December 2014
Look at the gasoline inventory numbers, the destruction of gasoline demand, and then ask yourself: why are gasoline prices still so high?
What does this mean for refiners?
- raw product (oil) at very high prices;
- too much gasoline sloshing around;
- unable to sell the gasoline that's already produced?
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