RE:RE:RE:RE:EIA Crude draw -12.5m, Gasoline -2.1m Dist -0.6mAll the talk of the US banning oil exports is made by people that don't have a clue about the US energy industry. Most in the industry don't even listen to them they are so out of line with reality.
Most refiners in the US are made 30 years ago, and can't process all the light sweet WTI crude that the US produces. They need medium and heavy sours as feedstock which need to be constantly imported, and they blend it with WTI, making their energy supply totally reliant on imports. Crude quality matters.
So if they were banned from exporting it, just where would they store all the extra 4-5 mbpd of crude they can't consume? WTI prices would collapse in a national glut, and it would be the quick end of the US shale industry for sure.
These idiots hold positions of power, and that is why US energy policy is in such a mess.
Waiting for both sides to quit their partisan posturing and get down to business to agree on the new debt ceiling is hard. It has the markets sitting on their hands as each side blames the other for not compromising. Like 2 children fighting over a toy, each refusing to yield until mama steps in.
Until then, market sentiment is risk off, presenting an opportunity.
As soon as we get to the 11th hour, and they announce a deal, the market will react like a stampede of elephants trying to get through a keyhole.
The debt ceiling games have happened repeatedly and sucessfully 74 times since the 60's.
Since news of a deal may be reached when the markets are closed, one may not be able to catch the move unless already holding positions.
matt2018 wrote: thank Migraine..... Cdn imports were actually up from last week.
It was the OPEC nations that all cut imports into the U.S.
Nigeria especially had a very large cut (perhaps other problems going on there).
If these cuts/draws persist, I can see the administration raising the issue of banning Exports again like they did last year when Oil price shot up (even though they were advised it would make matters worse globally).
Regardless, as talked about everywhere, markets will remain under pressure till these clowns in Wash. get their act together but the fundamentals of demand/supply eventually have to give way.
Someone needs to remind Joe, he lost the House in the midterms.
American people want him to compromise with the Repubs.
His handlers also need to explain his approval numbers to him as well.
Hello???