Oil Report: Day of Supply

[dan_s]

The United States economy must have a steady supply of refined products that are primarily made from crude oil. A safe level of supply is ~30 days.
Based on today's EIA report we are now at dangerously low levels for some key products.

Days of Supply
Mar 30 / Apr 6
25.4 / 25.4 < Crude Oil
25.5 / 25.8 < Gasoline
22.8 / 23.8 < Jet Fuel
32.3 / 31.4 < Distillates (Diesel and Heating Oil)
26.5 / 26.4 < Propane

Keep in mind that Days of Supply is only based on U.S. consumption. We also export a lot refined products to countries that are very dependent on a steady supply of transportation fuels.

We never really caught up after Hurricane Harvey.

At these levels of supply, ANY unplanned supply disruptions will cause a spike in the price of oil.

[dan_s]

Yemen’s rebel Houthi movement launched earlier on Wednesday drone strikes on a Saudi Aramco facility and on an airport in Saudi Arabia, Houthi-owned Al-Masirah TV channel reported on Wednesday. The Iran-aligned Yemeni rebels, who have been fighting a Saudi-led Arab coalition in Yemen since 2015, said that they targeted on Wednesday morning local time the Abha airport in Asir and Aramco in Jazan, according to the Houthis’ Al-Masirah outlet.

Aramco says that its plants are operating normally and safely, Reuters reports.
Read: https://oilprice.com/Energy/Energy-Gene ... _content=1


If one of these rocket attacks blows up a major Aramco facility, the price of oil will spike.

[dan_s]

According to weapons monitor Conflict Armament Research (CAR), quoted by Reuters, CAR has evidence that the Qasif-1 drone used in today’s strike was made in Iran, “in contrast to Houthi statements”. Saudi Arabia and the coalition it leads in Yemen accuse the Houthi movement of being sponsored and backed by Iran, while Tehran and the rebels deny those charges.

Oil prices are trading up on the news, with Brent topping $72/bbl