VBIN's oil stock thread.

[EricL]

Oil futures over $108 after another big draw in storage from the API report. If EIA confirms tomorrow, the price probably sticks and continues to rise.

We are supposed to be building stocks in storage this time of year ahead of increased demand for the summer driving season, not having total draws of nearly 10 million barrels.

The market is in structural deficit already. If Russian crude exports are removed, I don't even want to guess how high crude could go, and what impact that would have on already runaway inflation.

Quote:API

• Crude -6.1mm (+2.8mm exp) - biggest draw since September
  
  
• Cushing -1mm
  
  
• Gasoline -2.5mm
  
  
• Distillates +0.4mm
  

Crude inventories saw a huge drawdown last week (the most since September) according to API. This was a major divergence from the expected build...

Coal prices are also surging. I've been buying BTU of late, and will likely add to both it and more of my oil stocks in my trading account.

Another great read from Goehring and Rozencwajg for anyone interested.


  2021.Q4 GR Market Commentary.pdf (Size: 589.19 KB / Downloads: 0)