Welcome back to another Thirsty Thursday, the most entertaining hydrocarbon inventory report on the internet! This week we are drinking another holiday inspired cocktail, the Sugar Cookie Martini. Again, because it is difficult to find royalty free images of this special drink, I have included a photo of a more generic looking martini. That aside, mix yourself up this festive firewater and lets get into the numbers.
Would you look at that, another good-sized draw this week. The EIA expected a draw of around 3.3 million barrels, and ended up reporting a draw of 5.2 ish million barrels.
The API also reported a fairly large draw of nearly 6.5 million barrels of crude while they had only forecasted one of about 3.9 million.
The SPR has released their latest data, showing a draw of just over 2 million barrels. While it may still be releasing a bit of oil, the amount has certainly decreased this month, a likely reason the last month has only witnessed draws. The SPR inventory now sits at 387 million barrels, lowest since March of 1984.
The bar graph below makes the last month of draws pretty clear, while this weeks hasn’t been the largest of the month, it is one of the largest in the past several months! Meanwhile, inventory of crude oil is dipping even further below the 5-year range typical for this time of year.
The COVID situation in China continues to wreak havoc on oil price stability. China’s strict COVID regulations are causing citizens to become restless and unpredictable, just like the oil price this week. It hasn’t resulted in anything good though, prices have decreased again this week and now sits at ~$80 for Brent and ~$71 for WTI.
Natural gas prices have continued to drop again this week too and now sit at just below $6.
Not much new on the gasoline front, neither in stock or price. Gasoline continues to become cheaper and cheaper, and gasoline stocks have made a great recovery the last few weeks! Even managing to climb back into the 5-year range.
Speaking of cheapening gas prices, the national average decreased by $0.43, and now sit at $3.295. Hawaii has the most expensive gas and is the only state to record an average over $5. Texas and Oklahoma are among the cheapest in the country at $2.733 and $2.770 respectively.
Diesel has become $0.15 cheaper this week too. Distillates have made a huge comeback this week, and by huge I mean really huge! I mean look at the graph below on the left, this years weekly line has just nearly recovered to within the 5-year range. The recent build of distillates and primary diesel has largely been the result of widespread economic slowdown, as well as the events in China.
That’s all for this week, have fun celebrating the holidays, drive safe and drink responsibly, cheers!
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