Crude Oil Storage Report - Feb 22

[dan_s]

Note that despite a rather low refinery utilization report, crude oil inventory declined. Also, note (which I have posted here many times) U.S. production flattens out in Q1 because the flush production caused by the mad rush to complete a lot of wells before year-end peters out. It happens each year, but EIA seems to forget it each year. - Dan

Change in Stocks (mbbls)

Crude: -1616

Cushing Crude: -2664

Motor Gasoline: 261

Distillates: -2422 < The ultra light oil from the shale plays does not produce distillates. This will become a BIG DEAL as we move deeper into the year. I explain why in the newsletter.

Change in Production: -1,000 bbl/d

Refinery Utilization: 88.1% < This number will spike to over 95% in April. That is when U.S. crude oil inventories will drop like a rock.

[dan_s]

From 3/31/2018 to 2/16/2018 U.S. commercial crude oil inventories have declined 115 million barrels.

[ChuckGeb]

That’s what I call true backwardation!