RE:RE:The algo's swoon on massive import buildChrisinvan7 wrote: Indeed, there's been a significant increase in imports since mid January, conveniently timed with the end of the SPR releases.. Biden essentially bestowed civil immunity on MBS in late Nov over Khashoggi.
Could diverting more barrels to the USA be the Saudis upholding their end of the deal?
It all comes down to the changes made last year to how the EIA reports crude stocks , the changes turned the focus on supply so as to give SPR releases more headline drama . The EIA no longer pays attention to demand but how supply relates to demand . Take the last few weeks as an example .
2 weeks ago the US imported 41.3M barrels of crude , last week imports ballooned to 51.1M barrels , an increase of 9.8M barrels . Those additional 10M barrels caused a net build of 4M barrels and thats the headline , DEMAND OVERWHELMED BY SUPPLY ......... but is it ?
Be it an SPR release or increased imports , anyone with basic math skills can see 6M more barrels were consumed week over week without the additional imports . Demand actually increased week over week but the report tries to hide that fact . Domestic supply is the only guarantee , imports are hit and miss . The reality is the US doesn't have either the domestic supply or the ability to refine enough product to satisfy its own requirements .
I see shortstack has been working overtime spewing fear over China and a recession . Today the US reported 500,000 new jobs created and that sounds like a healthy economy and increased demand to me . Government policy has handcuffed domestic supply yet Biden/trudope blame Putin , war profiteering and unpatriotic big oil for the mess that the left has created . Wedge politics only point fingers and blame others for your own short-comings , every day this stupidity is allowed to go on , the closer north america comes to disaster .
This weekend (1 yr after Putin invaded Ukraine) Europe has finally gotten around to banning the import of Russian petroleum products into the EU . India on the other hand , is unapologetic regarding their increased Russian imports because Modi is only concerned with India . Unfortunately for the world , India doesn't export refined product so already stressed supplies of gas and diesel in the EU and the US will only be stretched further .
Time is running out on this masquerade and as we close in on driving season , the true nature of this deception will be exposed . Why governments insist on this hostile attitude toward such a critical industry when a minimal effort and dialogue could increase government revenue , ensure supply and truly allow O&G to participate in transition solutions . North america needs to wake up and get a government in place that works for the people instead of the people working for a corrupt misguided government .
Sorry for the rambling nature of this post but if you have the patience to have gotten this far then you have the patience to see this ridiculous charade through to its conclusion . Do your part , stay warm and keep your tank full .