RE:RE:EIA: Another net draw in Crude + SPRExactly!
Welcome to the manipulated oil market, where you need to dig and ask the right questions.
I'll try to paint a picture.
You are employed full time.
You have 2 pockets.
You get paid each day into the right pocket.
You keep your savings reserve in the left pocket for emergencies.
Each week, your loving wife asks you how much money you have, so she can go shopping for groceries. You tell her what is in your right pocket.
However, recently, you have been having trouble making ends meet as you were forced to work part time from full time, and groceries are costing more. You are taking out money each day depleting the emergency savings in the left pocket and moving it to to the right pocket, and also giving some away to friends and some aquaintances with drug problems. You don't even try to hide it.
When the wife asks how much money you have, you only tell her the amount in the right pocket. It seems that is all she seems to care about, although she knows about the extra money in the left pocket, and you supporting your crackhead friends.
When the money runs out and she can't buy groceries, she will be furious, blame you for the problem, and that will spell the end of your pleasant relations with your good friends and those other leeches that will turn on you. You will now compete with them for work as they try to take your job. Not a happy family.
The market hasn't figured this out yet, but it will one day when oil is desperately needed, like when the teenage son crashes the family car, and everyone has to walk because you don't have the funds to replace it.
Before Biden raided the SPR, (and I say raided because there is no provision to replenish this last 180 million bbl release), SPR levels remained relatively constant. It was out of reach to the market deep in the cavernous salt vaults. Thus, small SPR inventory changes never moved the market prices much in the weekly inventory reports. There was always money in the left pocket. It was untouchable unless there was an emergency like hurricanes or wars, which this administration is betting we won't have anymore.
Meanwhile, I notice that the US Ronald Reagan carrier strike group is conducting 'routine' freedom of navigation operations in the disputed South China Sea, where China claims to have driven away a destroyer that sailed close to the Paracel Islands.
Perhaps they are there to protect the oil tankers full of SPR crude headed to China.
Bigbear7405 wrote: SO why does BNN network only mention commecial up 3,254 when all of this is from SPR?
MigraineCall wrote: Yet another net draw in crude, SPR, and product.
Data includes July 4 holiday Monday, so will take a week for data to wash out.
This net draw happened even while lower 48 production reported being up 600k bbls/day.
US crude inventories fell by 3.627mb last week (commercial +3.254mb, SPR -6.881mb) - EIA
EIA (wk ending 8 July)
Crude: 3.254M
Cushing: 0.316M
Gasoline: 5.825M
Distillates: 2.668M
US implied oil demand (product supplied) fell by 1.744mbpd w/w to 18.720mbpd last week w/w changes in kbpd gasoline -1351 jet fuel -437 distillate -1014 residual fuel oil +253 other oils +836 EIA