Today's take: the decision for release of oil from the SPR was much more complicated than folks like me understood at the time the announcement was made, some six months ago.
Pet peeve: inaccurate headlines by mainstream media.
New release? Link here: all that talk about a new, additional release before the midterm elections -- won't be delivered until after the midterms, to be delivered in December, 2022. Effect on gasoline prices? At best: previous releases have reduced gasoline prices by about forty cents per gallon compared to what they would have been absent these drawdowns.
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The Weekly EIA Petroleum Report
WTI: $84.11 at time of release.
The numbers:
- crude oil inventories decreased by 1.7 million bbls, despite or because:
- refiners operating below 90% of their capacity;
- huge SPR releases continue
- refiners operating at 89.5% of their operating capacity;
- US commercial crude oil inventories are only 2% below the five-year average for this time of year
- the high price of gasoline is not due to a shortage of crude oil, and it's not due to lack of refining
- distillate fuel inventories increased slightly; inventories remain 20% below five-year average;
- jet fuel supplied was up 7.5%
Eight minutes after release, WTI at $84.16 and trending very slightly higher.
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