Crude Oil Inventory - Whats important to note
Posted: Thu Jul 27, 2017 1:03 pm
At yesterday's luncheon I stressed that the main thing to look at when comparing crude oil inventory to historical date is "days of supply", not the total barrels.
The week ending March 17, 2017 U.S. crude oil inventories peaked at 34.2 days of supply. For the week ending July 21, 2017 they are at 28.1 days of supply.
Demand for refined products goes way up each Q3 and so does refinery utilization. Crude oil is the "raw material" for refiners, who are the "manufacturers" of all of the refined fuels and other liquids our standard of living depends on.
Take a hard look at this chart: https://www.eia.gov/dnav/pet/hist/LeafH ... S_DAYS&f=W
In a country that still imports about 45% of the crude oil we consume each day, I think we need AT LEAST 30 days of raw materials in inventory.
BTW the EIA reported yesterday that U.S. oil production DECLINED last week by 19,000 barrels per day.
The week ending March 17, 2017 U.S. crude oil inventories peaked at 34.2 days of supply. For the week ending July 21, 2017 they are at 28.1 days of supply.
Demand for refined products goes way up each Q3 and so does refinery utilization. Crude oil is the "raw material" for refiners, who are the "manufacturers" of all of the refined fuels and other liquids our standard of living depends on.
Take a hard look at this chart: https://www.eia.gov/dnav/pet/hist/LeafH ... S_DAYS&f=W
In a country that still imports about 45% of the crude oil we consume each day, I think we need AT LEAST 30 days of raw materials in inventory.
BTW the EIA reported yesterday that U.S. oil production DECLINED last week by 19,000 barrels per day.