RE:RE:RE:RE:More Retail APOCALYPSE: Domino's CLOSING 1000s Of Stores agree mrbb. I am not conspiracy type but something definetly going on with oil price.
Short traders/insiders not only know something, but are very confidant to keep the party going.
I have been mentioning this for awile now.
Current oil market is fairly straighforward.
No longer a "growth" business but nevertheless, steady supply is needed for steady consumption.
Lets leave the SPR out of this equation for now.
Here are the daily avgs for 2023 up to the last EIA report (week ending June 9) on the four main numbers.
All numbers bbl/day, rounded off.
U.S. production 12.3 M
Imports 6.4 M
Exports 4.1 M
Oil to Refineries 15.5 M
This scenario leaves a deficit of -0.9M per day (-6.3M per week).
Here are the numbers for last 4 week averages,
U.S production 12.3 M
Imports 6.5 M
Exports 3.8 M
Oil to refineries 16.4 M (driving season kicks in)
This scenario would leave a deficit of -1.4M per day (-9.8M per week).
Now the Adjustment number comes in.
it is defined on the report as "Formerly known as Unaccounted-for Crude oil, this is a balancing item".
This number can vary from zero (two weeks ago number when they reported a huge draw) to 2M (last weeks number was 1.9M when they reported a huge build).
This number determines if there is a weekly draw or build, not the other numbers (which are fairly consistant).
Last year up to June 10, 2022, daily Adjustment number was 0.242 M
This year up to June 9, 2023, daily Adjustment number has been 1.1M
If the last 4 week average numbers hold up, Adjustment number of 1.4M bbl/day will be required to keep the Commercial stocks from showing a draw.
Where are these barrels coming from?
Obvious that this is what is keeping Oil price down here.