Focus On Fracking Has Posted -- January 23, 2022

"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?