No. of Recommendations: 1
The Trump administration continues to aggressively drain the Strategic Petroleum Reserve (SPR). The amount of crude in the SPR tumbled by another 9.1 million barrels last week, just shy of the record-setting decline the prior week. The emergency reserve is down by 50 million barrels over just the past two months alone.I posted a link on the Policy board, some days ago: the CEO of either Exxon or Chevron warning that global reserves of crude are being drawn down, and the potential for a major oil shortage this summer. Of course, he could have been talking his book, but the US administration is the only one expressing optimism that the Strait will reopen and the flow of oil resume, any time soon.
I also posted a hilarious Irish drinking song "Shipwrecked in Hormuz" on the policy board.
Gasoline inventories continue to fall sharply, declining last week to the lowest May level since 2014. Diesel and other distillates are now at their lowest level since May 2003.It has been suggested that the US cap exports of crude and refined products, to ensure adequate supplies of American produced oil for Americans. An administration official promptly declared that a really bad idea. So, USians will need to bid against fuel starved countries around the world, for oil produced in the US.
Burgum Dismisses US Oil Export Curbs as ‘Bad on All Accounts’https://news.bloomberglaw.com/environment-and-ener...Poor decisions make for poor outcomes.Estimates are that, at the start of the year, there was some 2-3Mbpd of excess production in the world, crushing margins and smoking profits. Now, big oil is pocketing an extra $30/bbl of pure profit, thanks to the artificial constraint on supply.
Steve
