Commercial Crude Oil Inventories Drop A Whopping 7.1 Million Bbls -- August 17, 2022

Link here:

• 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;