As a reminder, for someone investing in oil, days of supply greater than 20 days of supply (in the US) is not "good." We haven't been below 20 days in ages.
I've grown to accept 25 days of supply as being "acceptable. When supply gets to 26 days and trends lower that's nice. But now, after trending toward 26 days during the last days of summer / early days of autumn, that trend has reversed, and not only has the number gotten back to 27, it has just gone over 28 days.
A painful trend for someone who invests in "oil."
By the way, the "diesel shortage."
The shortage of diesel is not due to lack of oil which the Bidens and the Saudis would have us believe.
The shortage of diesel is not due to lack of refining. Refiners are only operating at 88% of their capacity and there's a 25-day-supply of diesel. The guy on the corner buying diesel cannot possibly be short diesel if there's a 25-day supply.
So, what's the cause of the perceived shortage?
In the early days of the Covid-19 pandemic there quickly developed a toilet paper "shortage."
There was no toilet paper "shortage."
The "diesel, October, 2022," is today's "toilet paper, May, 2020" shortage.
It's not oil production; it's not refining; it's logistics. And, to a great degree, due to manipulation and human behavior.
By the way, did you all see the new "crack" spread for refiners? It's quite remarkable. Refiners are "making $60 bbl refining" coming off an even higher price point.
Don't believe me? I'll post the link later. The links have been posted.
But first, from RBN Energy
It's amazing how the Saudis have the Americans "believing" it's an "SPR issue." No, it's not.
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