crude is soaring

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Fraser921
Posts: 3100
Joined: Mon Mar 22, 2021 11:48 am

crude is soaring

Post by Fraser921 »

my short term $ 10 up call to 80 seems to be on track- (That's why you pay me the big bucks)

Yesterday, the American Petroleum Institute reported an absolutely jaw dropping 6.4-million-barrel drop in gasoline supply week over week. That added to a deficit that already saw inventories at the lowest level pre-Memorial Day since 2014. That is really an all-time low if you consider the increase in gasoline demand as a comparison. Demand will more than likely will see another upward revision by reporting agencies soon.

In the meantime, Americans want gasoline and that is getting harder to find. Not just based on plunging inventories in the US but even in Russia. Yes, that Russia, the one that has been compared to a big gas station. They are considering putting a halt on gasoline exports because Russian President Putin is worried about meeting domestic gasoline demand. Maybe Mr. Putin, who is putting Russia’s energy security first, can give Biden some tips on that as he has exported the bulk of our Strategic Petroleum Reserve to the rest of the world. In the US, New York Harbor is scrambling to get supply as they failed to secure gasoline supply from Europe as their supplies are tight as well and continue to draw on the Gulf Coast. Reuters reported that after the European Union introduced a ban on Russian refined oil products including diesel and fuel oil from early February, Russia boosted gasoline exports by nearly 50% year on year in the first quarter, shipping cargoes directly to Africa. But now Putin wants to keep supply at home and has reduced subsidies for Russian refiners.

So, it will be a hard sell for the Biden team to reverse course and release oil from the SPR after they promised they would refill it. That would get huge political backlash from the Republicans but also from anyone who had a distaste for fossil fuel hypocrisy. But the hard reality is that the US oil supply of crude are already starting to plunge, and the supply drain should get worse in the coming weeks.

Yesterday the API reported a big 6.8-million-barrel drop in crude supply. US production of oil though looks like it is topping out as rig counts plummet in part because of Biden’s intervention in the market with SPR reserves and policies that demonize the fossil fuels industry and discourages investment and education in the fossil fuel industry.
Fraser921
Posts: 3100
Joined: Mon Mar 22, 2021 11:48 am

Re: crude is soaring

Post by Fraser921 »

Could we see gasoline shortage's this summer???

EIA (wk ending 19 May)
Crude: -12.456M
Cushing: 1.762M
Gasoline: -2.053M
Distillates: -0.562M
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