Crude oil supply -August 18
Posted: Fri Aug 18, 2017 9:43 am
Read this carefully: http://www.businessinsider.com/oil-inve ... -us-2017-8
After surging to record-high levels earlier in the year, there’s been a sharp drop since March, seeing inventory levels fall back towards average levels seen over the prior five years.
“US oil inventories are now only around 2.5 days of supply above the 6-year average for this time of year,” says Vivek Dhar, mining and energy commodities analyst at the Commonwealth Bank.
“That marks the smallest oversupply margin this year, which is significant given that margin was as high as 7.7 days in early March.
I have been making the argument in my weekly podcasts that the proper way to look at crude oil inventories (or any raw material inventory for that matter) is DAYS OF SUPPLY. Keep in mind that the United States economy and our high standard of living absolutely must have a steady supply of hydrocarbon based liquid fuels and feedstock. Remember that the U.S. still needs to import more than 45% of the crude oil we consume each day. - Dan
After surging to record-high levels earlier in the year, there’s been a sharp drop since March, seeing inventory levels fall back towards average levels seen over the prior five years.
“US oil inventories are now only around 2.5 days of supply above the 6-year average for this time of year,” says Vivek Dhar, mining and energy commodities analyst at the Commonwealth Bank.
“That marks the smallest oversupply margin this year, which is significant given that margin was as high as 7.7 days in early March.
I have been making the argument in my weekly podcasts that the proper way to look at crude oil inventories (or any raw material inventory for that matter) is DAYS OF SUPPLY. Keep in mind that the United States economy and our high standard of living absolutely must have a steady supply of hydrocarbon based liquid fuels and feedstock. Remember that the U.S. still needs to import more than 45% of the crude oil we consume each day. - Dan