From Gaffney Cline & Associates Energy Market Update 2/23/2018
The weekly EIA data indicated that US crude inventories fell by 1.6 million barrels in the week to February 16. Crude stocks were expected to have risen by 1.3 million barrels; additionally, crude stocks at the Cushing, Oklahoma delivery hub for WTI fell by 2.7 million barrels and now stands at 30 million barrels, with 70% of the storage tanks empty. When summer demand arrives, refineries could be squeezed.
Crude inventories generally rise at this time of year, as many refineries cut crude intake to conduct maintenance, but a bottleneck in Canada's pipeline system has reduced US imports causing a US crude stock decline.
US crude production was nearly unchanged at 10.27 million barrels a day, remaining near record levels while crude exports climbed above 2 million barrels a day.
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My Take: Almost all of the U.S. increased oil production is ultra-light shale oil. Our refineries need heavier crude. Therefore we need more imports from Canada, especially since Venezuela is falling off the cliff.
U.S. Oil Supply
U.S. Oil Supply
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group