The Million Dollar Way (The Bakken Oil Blog)

Wednesday, January 11, 2023

Gaslighting: Almost 200 million bbls may never be returned to the SPR. I'm shocked. Shocked.

the US DOE may not have sufficient budget to refill the petroleum reserve;
it's such a convoluted story, I won't even attempt to break it down.
but, that pretty much ends any more releases for political purposes in the near future
and, we all know, the real SPR is now Saudi Arabia for heavy oil, and the Permian for light oil
something tells me, we have a new floor for the price of oil -- whoo-hoo!
it should be an interesting summer.

Gasoline demand, link here:

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Back to the Bakken

Active rigs: link here.

WTI: $77.68.

Natural gas: $3.678.

No new permits.

Nineteen permits renewed:

XTO (10): four Wood permits in Truax oil field, Williams County; five Hartel permits in Siverston field, McKenzie County; one Carus State permit, Lost Bridge, Dunn County;
Hess (7):
Hunt (2): two Patten permits, Parshall oil field, Mountrail County.

Biggest energy story today: WTI keeps "melting up."

Holy mackerel: WTI up 3% despite huge build.

Not only that, but "days of supply" for WTI surges:

US crude oil inventories jumped by 19 million bbls -- but this is a one-off -- due to recent weather;

but look at this: at 439.6 million bbls, US commercial crude oil inventories are 1% above the five-year average. Wow, wow, wow.

imports: yawn
refiners operating at 84.1% operating capacity;
distillate fuel inventories decreased by 1.1 millions and are back to a whopping 18% below the five-year average as we go into the planting season;
propane: look at this: despite a decrease of 2.1 million bbls, inventories are a whopping 18% above the five-year average;
jet fuel product supplied was down 0.8% -- but again, this was a one-off; machts nichts.

Gasoline demand, link here:

Despite that huge build, though it was telegraphed by the API data yesterday, WTI is up 3%: