YGRN - The Counter-Seasonal Oil Storage Draws Continue And What It Means For Oil Prices
- Counter-seasonal draws continue, implying significantly tighter market when demand rebounds.
- Near-term, however, refining margins are weakening, likely signaling a near-term pause for oil.
- US crude storage is still expected to trend below the 5-year average. US implied oil demand continues to improve.
- Implied US oil production is now showing visible signs of falling. Plains All American's disappointing earnings was a big tell.
- Net-net, short term, falling refining margins indicate peaking crude prices. Long term, counter-seasonal draws are unbelievably bullish if producers remain disciplined.
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The Counter-Seasonal Oil Storage Draws Continue And What It Means For Oil Prices