Energy crisis on the way

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aja57
Posts: 337
Joined: Sun May 29, 2022 10:35 pm

Energy crisis on the way

Post by aja57 »

Worth the read..
https://quoththeraven.substack.com/p/an-energy-crisis-wrapped-in-a-banking?utm_source=substack&utm_medium=email
Cliff_N
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Joined: Sun Jul 24, 2022 4:09 pm
Location: Seabrook, TX
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Re: Energy crisis on the way

Post by Cliff_N »

Thanks for the post. Loved this section:

'With that in mind, I believe that oil investors have now suffered through the following since the late summer of 2022:

China locking down over COVID for approximately 200 days with a demand loss of 2.5 million barrels per day (bbl/d) or 500 million barrels (bbl) throughout Asia

Global Strategic Petroleum Reserve releases in excess of 300 million bbl

Russia dumping approximately 150 million bbl of crude and refined products before sanctions took hold

A warm winter in Europe and North America which reduced heating oil and propane demand by approximately 100 million bbl

In total, we’re looking at a swing of approximately 1.05 billion barrels over a period of roughly 200 days, or 5.25 million bbl/d. With that in mind, the surprise shouldn’t be that oil prices declined under the weight of this massive swing. Rather, the surprise should be that global commercial inventories barely increased. Where did those barrels go? They got consumed. What’s more, they got consumed during a period where increasing interest rates incentivized many consumers to run down their existing inventory, inventory that is not tracked by the various acronym agencies tasked with tracking inventory, adding a further headwind to global imbalances."
ChuckGeb
Posts: 945
Joined: Thu Nov 21, 2013 2:46 pm

Re: Energy crisis on the way

Post by ChuckGeb »

Wow that really sums it up! Well put!

Where will it all go when we are all electrified?
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