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Sunday, January 23, 2022

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?

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