Note: This article was first published to HFI Research subscribers yesterday.
Over the coming weeks, US crude exports are going to get hit due to falling demand overseas and tanker logistics issues. Refineries all along the coast are delaying imports as long as possible as product storage at these hubs starts to fill up. We mentioned yesterday that product storage has a finite shelf life, and gasoline, in particular, lasts only 1-3 months.
As a result, refineries will not produce more gasoline unless they are certain they can drain inventories first. This is one of