The morning rant ..........Well once more we wade into the insanity as the supply/demand imbalance gets ignored and a dis-information campaign that would make Xi or Putin blush continues . While the truth can be dismissed in the short term the cummulative inaction will bite in the long term , so we wait .........
I heard several interesting things this morning regarding price and demand , demand first . There are a couple of airlines in the US that have already fully hedged their fuel demands for 2022 and have adjusted their ticket prices accordingly . All agree that demand for travel remains robust , PEOPLE WANT TO TRAVEL !!!!!
Regarding price and supply , open interest in the oil futures market are at near historical lows meaning all those tankers full of oil (floating storage) have sold their cargo's and no longer need to hedge those inventory . Little by little all excess oil is being absorbed into the market . Yesterday's API inventory report didn't mention how much SPR oil was accounted for in that week but the fact Cushing could boost inventory by 2.5 million barrels speaks to an SPR release . I read last night that new regulations as of Mar 8/22 allows a max of 4.4 million barrels/day for a max of 90 days .
Now considering the US used (on average) 19.78 million barrels/day , that leave a daily need of over 15 million/day just to maintain while max SPR is being released . Last I heard US production was between 10 & 11 million/day leaving a 4.5 to 5 million barrel shortfall . And where is the plan to help the economy or the working class ? No where to be seen .
Every way you look at the math it points to more pain at the pump and higher prices across the board . Dad used to always say , " while figures don't lie , liars can figure " and unfortunately for consumers , the liars range from elected officials to msm talkingheads , As frustrating as this childish behavior is , it also allows this supply/demand imbalance to widen . So we wait and watch the psycotic eco Ostrich in a staring contest with reality and the one thing I am certain of is that the Ostrich will blink first . Unfortunately by that time , the Ostrich will be forced to walk since the eco-express will be abandonded at the side of the road once they have run out of diesel .
I'm done so have a great day as we wait for logic and foresight to return to the debate .