EIA weekly US crude oil inventories +1448K vs +2001K expected

• 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.

This article was written by Adam Button at www.forexlive.com.