- Prior was -2332K
- Gasoline -5737K vs -1882K expected
- Distillates -1559K vs -757K expected
- Refinery utilization -0.6% vs +0.4% expected
Private oil data released late yesterday:
- Crude +4247K
- Gasoline -4560K
- Distillates +421K
Ahead of the report, WTI crude oil was trading higher by $1.04 to $67.30. These numbers today are bullish on all fronts as we head into a seasonally-strong period for crude.
There was a very interesting comment yesterday from former Pioneer CEO Scott Sheffield who sold the company to Exxon several years ago. He said his former shale company was running out of Tier 1 inventory by 2028 and Tier 2 by 2032. That highlights a bit of a cliff that the US is headed towards.
“One of the main reasons that Pioneer sold was…we were running out of Tier 1 inventory. Everybody is running out of Tier 1 inventory. People don’t talk about the fact that we are running out of inventory.”
He also said that $65/barrel oil today is equivalent to $50 pre-covid.
Drill, baby, drill is a fantasy.
