RE:EIA Inventory drawTwo parts that stood out to me were.
1. A draw down in gasoline - suggesting high gasoline prices have not reduced demand
2. No increase in lower 48 production. Suggesting that the extra rigs, and higher oil prices have not translated into additional production (so far).
Its also worth noting that imports stayed about the same and exports declined.
Yes there is a conflict going on in Eastern Europe, and yes there are some supply issues with Russian production, but that is noise on top of what is an energy crisis that started last October. The problems in the US appear to be unrelated to Eastern Europe given little change to the import number, and the addition of 4 million barrels from the strategic reserve.
The Strategic Reserve draw down made up for 600,000 boe/day the US used last week
At some point, there will be nothing left in the Strategic Reserve - then what?
How long before the US can increase lower 48 production by 600,000 boe day? Just to make up for what they are currently taking from their strategic reserve!!! This is a concern, becuase for the last 4 weeks, they've been unable to increase lower 48 production at all.