Weekly EIA petroleum report, link here:
- US crude oil inventories decreased by 1.4 million bbls despite huge SPR releases:
- refiners are operating at 91.3% of their capacity
- distillate fuel inventories decreased by a whopping 3.4 million bbls;
- we could really use that Canadian heavy oil that would have arrived by the Keystone XL;
- jet fuel supplied was up 2%
OPEC+ cut: we should know shortly.
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Back to the Bakken
The Far Side: link here.
WTI: $86.15. Shale operators are focused on break-evens of under $40. Just saying.
Natural gas: $6.802. Europe has filled their natural gas storage depots.
Thursday, October 6, 2022: 12 for the month, 12 for the quarter, 457 for the year
38807, conf, Crescent Point Energy, CPEUSC Fantuz 5-13-24-158NN-100W-MBH,
Wednesday, October 5, 2022: 11 for the month, 11 for the quarter, 456 for the year
38806, conf, Crescent Point Energy, CPEUSC Defrance 6-12-1-158N-100W-MBH,
36990, conf, Enerplus, Moray 149-94-36C-25H-TF,
35625, conf, Bowline, Lee 151-101-8-5-13H,
RBN Energy: oil prices have moved lower with SPR releases, but production still lags, part 2.
The swift increases in crude oil and gasoline prices that followed Russia’s invasion of Ukraine in February — and the sanctions that were implemented soon thereafter — spurred a lot of concern that the U.S. and global economies would go into a tailspin. In response, government officials here and abroad turned to their strategic reserves as a way to quickly balance the market and rein in prices while buying time for additional oil production to come online. But U.S. production growth and rig activity have hit a wall since June, when releases from the Strategic Petroleum Reserve (SPR) started to pick up steam, reducing the prospects for a significant output increase this year.
In today’s RBN blog, we examine the changes in the market since the major withdrawals were announced, how the hoped-for bridge to higher oil production has so far failed to materialize, and why it’s unlikely the government will turn to the SPR if prices spike again soon. The Biden administration, fully aware of the public's sensitivity regarding gasoline prices, hasn’t been shy about tapping the SPR. Last November — when prices first started to rise — it authorized a 32 MMbbl exchange in which barrels would be released by the end of April but would need to be returned to the SPR during fiscal 2022-24. Then, a 30 MMbbl withdrawal was announced shortly after Russia’s invasion of Ukraine in late February. Finally, on March 31, President Biden said the U.S. would release another 180 MMbbl of crude from the SPR over six months, or about 1 MMb/d.
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