YGRN - Oil Prices Fall On COVID Fears In China But Crude Inventories Continue To Fall

• Macro worries return as China is seeing a surge in COVID case counts.
• For the oil market, China's COVID worries will hit both the demand side and supply side.
• But despite the headline worries, China's crude inventory is declining along with the rest of the world.
• Product margins are supportive and moving higher, indicating there are no demand issues. And with Brent-WTI widening again, this will be a tailwind for the US oil market.
• All-in-all, so long as global inventories continue to decline, we are moving in the right direction.

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