WTI is down over 11%, US has 15m bbls planned to sell in 2022
1.NFLX$Netflix(NFLX)$ up ~14% after hours. Now imagine if a E&P$Empire Petroleum Corp(EP)$ reported such top and bottom line numbers, would probably be down ~14%.2.With or without 180m bbls emergency SPR sales, US has 15m bbls planned to sell in 2022 and ~32m in 2023.
Before WH instucted a 180m bbls of crude oil released from SPR, we had several other legislated drawdowns, which would have reduced crude in SPR from 618m bbls to 314m bbls by 2031.
Now deduct 180m bbls, and by 2031 we have 134m bbls.3.WTI is down over 11% since Ocober 7th highs, back below pre-OPEC announcement. Something just isn’t right.
Uncertainty and lack of clarity on Gov energy policy is leading to nervousness and extreme volatility. We're headed for a protracted economic downturn led by housing. That's whats wrong.
The strategic reserve releases probably accounts for some of that. We are still at a slack season between summer driving and winter heating. What I do know is heating oil stockpiles are at like 63% of normal and current heating oil on the spot market delivered are in the mid $5
Biden administration is set to release 10/15m barrels from the SPR this week hence the lower crude price. In the spring, they set aside 180m barrels, and 160m have been released so far. Imo, this lowered price is temporary. SPR releases won’t last long coupled with OPEC+ cuts
https://twitter.com/Gugo907/status/1582470027285909505
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