- US crude oil inventories decreased by a whopping 7.1 million bbls; despite the SPR release of one million bopd for the past several months; this is simply astounding;
- US crude oil inventories now stand at 425.0 million bbls; 6% below the five-year average;
- US crude oil imports ... yawn.
- US refiners operating at 93.5% of their operable capacity; trending higher
- US distillate inventories increased by 0.8 million bbls; 23% below the five-year average;
- US jet fuel supplied was up 5.6% compared with same four-week period last year;
WTI: following the report:
- WTI up 1.64%; up $1.42; trading at $87.95
We will get gasoline demand data later this afternoon.
Meanwhile, Biden's ban on drilling on federal land, reinstated by a judge.
- judge feels pain of collapsing oil prices
Sanctions:
- two things
- first, sanctions take time to work;
- second: with regard to Russia, it's the long-term impact of sanctions that will cripple Russia
- Russia was unable to even re-furbish one turbine for its Nord Stream 1 pipeline
- any thoughts on whether that county could "do" a major project in the Arctic without western technology and expertise?
- short answer: no.
- Russia's Arctic LNG project is in jeopardy due to sanctions
- the LNG carriers meant for the plant will no longer be built
- link here.
And finally:
- when prices rise, one might sell inventory at higher prices;
- when prices decline, one might withhold sales from inventory, and wait for higher prices (that's why farmers have elevators and join co-ops with huge elevators)
- Saudi: prices falling and yet Saudi crude oil inventories have also fallen; selling their inventory at lower prices? Why would they do that?
- for one thing, they have to meet contractual agreements
- link here;
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