EIA Weekly Petroleum Report --- June 29, 2022

Note: refiners in PADD 3 are operating at 97.9% of their operating capacity.

Note: Peter Zeihan's c. 2022 just hit #3 on Amazon's best seller list. I'm halfway through. Superb book. 

Note: US 1Q22 final GDP reading = minus 1.6%.

Brent back to >$120.

Back to the EIA: Most fascinating. 

Apparently most EIA products will still be delayed but the agency has released the weekly petroleum report.

While we waited for the report to be released, EV tickers:

• TSLA: down 3%; down $22; back to $675
• RIVN: down almost 4%; down $1.00; back to $26.
• RIDE: down almost 6%; down to $1.66; 
• GOEV: down 5% down below $2.00 again

What to watch? WTI. 

Prior to release: WTI at $113.70.

Thirty minutes after EIA report released: $112.70. Down a buck. Tells me all I needed to know.

Link here. 

The report, for week ending June 24, 2022:

• US crude oil inventories decreased by 2.8 million bbls (and this is on top of that record-breaking SPR release). 
• US crude oil inventories stand at 415.6 million bbls, 13% below five-year average; irrelevant;
• US crude oil imports average 6.0 million bopd; four-week average, 6.3 million bbls, 5.1% less than year ago; yawn. 
• US refiners working at a whopping 95% -- this is the number most folks are watching;
• US gasoline supplied averaged 2.0% less than same period last year
• US distillate inventories down 7.4% from same period last year
• US jet fuel supplied was up 17.1% compared with same four-year period last year

It looks like refiners are focused on distillates over gasoline. Next time you drive by a service station, compare price of diesel with gasoline. Refiners are making more money on diesel than they're making on gasoline. 

There is no shortage of oil; there is no shortage of gasoline. Having said that, local gasoline outages have been reported.

Highly recommend: if traveling this weekend, don't let your vehicle's fuel tank get less than half full.