A different take on the July 5 EIA report
Posted: Fri Jul 06, 2018 9:46 am
From the TPH Morning Notes 7-6-2018:
DOE Recap: Missing the forest for the trees
"Surprise crude build (+1.2mmbbls) largely neutralized by strong 2.1mmbbls draw at Cushing, Oklahoma. Dismissal of this week's weakness in crude exports (down 699mbpd w/w) & crude runs (down 163mbpd w/w) remains a catch-22: Yes, last week specifically was an all-time high for exports, but crude exports and crude runs have been abnormally high for 2018 as a whole. The overall US refinery complex appears satiated with incremental barrels needing to hit the water. We continue to expect that the magnitude of crude builds during fall turnaround season is being underestimated by the market. Don't expect a reprieve from Canada as imports topped 3.7mmbpd last week (an all-time high) and show no signs of slowing ...even with the Syncrude project offline."
DOE Recap: Missing the forest for the trees
"Surprise crude build (+1.2mmbbls) largely neutralized by strong 2.1mmbbls draw at Cushing, Oklahoma. Dismissal of this week's weakness in crude exports (down 699mbpd w/w) & crude runs (down 163mbpd w/w) remains a catch-22: Yes, last week specifically was an all-time high for exports, but crude exports and crude runs have been abnormally high for 2018 as a whole. The overall US refinery complex appears satiated with incremental barrels needing to hit the water. We continue to expect that the magnitude of crude builds during fall turnaround season is being underestimated by the market. Don't expect a reprieve from Canada as imports topped 3.7mmbpd last week (an all-time high) and show no signs of slowing ...even with the Syncrude project offline."