July 19, 2018

WINNING: U.S. Oil Shock: Production Hits 11 Million, Inventories Jump Unexpectedly.

The Energy Information Administration said U.S. output hit 11 million barrels per day last week, after holding at 10.9 million bpd for the prior five weeks. Just five months ago, domestic production topped 10 million bpd.

But production data from the lower 48 states appears to be getting rounded off in recent weeks, meaning actual output may be slightly below 11 million bpd.

Crude stockpiles rose by 5.8 million barrels. Gasoline supplies fell by 3.2 million barrels. Analysts polled by S&P Global expected a 3 million-barrel drop in crude stockpiles and a 1 million-barrel drop in gasoline supplies.

I get the feeling that when summer peak demand fades and refineries have a chance to catch up with crude inventories, that pump prices will fall hard and fast.

Just nobody tell Obama.

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