Post by
Farmer12 on Nov 03, 2021 11:19am
Oil demand in U.S.
Gasoline production last week jumped from 10.1 million bpd to 10.2 million bpd. Distillate production climbed from 4.6 million bpd to 4.8 million bpd. Total production increase in these two classes was 300,000 bpd. As air traffic builds and cold weather in the northern hemisphere sets in, demand will increase dramatically. Suncor, with huge FCF will put a floor under prices as they buy up cheap shares. Having said that, the number of drilling rigs in the U.S. has increased to around 544, an increase of around 248 from last year, Canada to around 166, up 80, and international to 787, up around 85. At some point this cyclical commodity will turn around, but there should be another 2-3 months of good times at least. When the end of winter is in sight, around end of January or early February, it might be time to leave the punch bowl and sneak out the back door.
Comment by
Vlosun on Nov 03, 2021 2:04pm
"When the end of winter is in sight, around end of January or early February, it might be time to leave the punch bowl and sneak out the back door." Really? You would miss the 2022 driving season. Tough to predict the top.