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From A Refiner: It's An Emergency
Hess calls for global SRP release of 120 million bbls this month and another 120 million bbls next month, calling this an emergency. Link here. I'm sure the CEO is looking at a number of data points but his biggest concerns:
- global economy coming out of Covid-19 lock downs; global economy to surge;
- US driving season begins in two months;
- air travel will skyrocket this summer;
- Ukraine-Russia conflict will disrupt historic flow of crude oil and refined products;
- knows that OPEC spare capacity is a myth
It's very interesting. A single severe hurricane can create a temporary -- generally two weeks -- emergency. What we're likely to see this spring is something much worse than the worse hurricane on record and the situation won't end in two weeks.
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This Includes Refined Products
This is really amazing. Look at that plunge in 2020 and in the big scheme of things, US shale and refiners did not seem to cut back that much. If that's accurate, we're in for a debacle starting .. oh, about week 15. We're in Week 10, right now.
Meanwhile, Cushing storage. Somewhat irrelevant these days, but WTI is still priced off Cushing data. Link here.
