- Oil rallied Tuesday despite the announcement that crude consuming nations would be releasing oil from their strategic reserves
- WTI was already down nearly $10/Bbl leading up to yesterday's official announcement – pricing in the rumor of more crude on the market
- The total SPR release by the U.S., China, Japan, India, and South Korea was smaller than many analysts and traders expected (BBG)
- EIA oil Inventories
- Bloomberg Survey
- U.S. crude oil inventories: -1,526 MBbl
- U.S. gasoline inventories: -436 MBbl
- U.S. distillate Inventory: 559 MBbl
- U.S. refinery utilization: +0.48%
- Brent at $82/Bbl is pricing in not only the release of the announced reserve but also a 1.5 MMBbl/d-hit to global demand over the next three months, Goldman Sachs said in a note dated Nov. 23 (Bloomberg)
- The aggregate 70-80 MMBbl reserves release was smaller than the more than 100 MMBbl the market had been pricing in
- With the swap nature of most of those barrels, the net increase in even smaller 40 MMBbl in supplies over 2022-2023
- The 1.5 MMBbl/d demand hit is equivalent to pricing in a repeat of last winter’s 1 MMBbl/d hit to EU demand due to Covid-19