Oil glut officially gone
By Phil Flynn, Futures Magazine
January 11, 2018
The crude oil glut that many said would never go away is officially gone. For the first time since June of 2015, oil supplies are back in the average range and not above average. This is happening as U.S demand is above average and that in part explains why the supply of oil continues to drain at the fastest pace in history.
The Energy Information Administration reported that U.S. commercial crude oil inventories (excluding those in the Strategic Petroleum Reserve) fell by 4.9 million barrels from the previous week. That puts supply at 419.5 million barrels down from March 2017 when supply was at 528.7 mb in storage. That is a massive drop in supply as U.S demand soars, U.S imports have fallen and U.S crude exports are at records.
While we saw an increase in products, that was pale in comparison to recent demand. The EIA reported that total motor gasoline inventories increased by 4.1 million barrels last week and are near the top of the average range. Finished gasoline inventories were down slightly.
Yet, the demand was the story that has not been told enough. During the last four weeks, motor gasoline product supplied averaged about 9.1 million barrels per day, up by an impressive 2.5% from the same period last year.
Distillate fuel inventories increased by 4.3 million barrels last week and are in the middle of the average range for this time of year. Distillate fuel product supplied averaged about 3.9 million barrels per day over the last four weeks! That is a big increase year-over-year.
Itís not just U.S. demand. This demand surge is a global phenomenon...
Record draw for natural gas ...
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