- COVID-19 impact to linger into 2023, reducing demand by 3 MMBbl/d (Vitol)
- Surplus refining capacity will also be 3 MMBbl/d above demand, as new capacity additions offset retirements by older refineries
- An increase in electric vehicles, working from home, and carbon-free commuting (bikes or walking), as well as city bans on diesel vehicles (Europe, in particular), and the impact of diesel-gate will threaten demand, according to Giovanni Serio, head of research at Vitol
- President Biden eyes Dakota Access Pipeline as the project requires a federal easement (Bloomberg)
- The U.S. court of appeals for the District of Columbia refused to revive a critical pipeline easement on Tuesday for DAPL, effectively placing the ball in President Biden's court
- According to Bloomberg's analysis, Biden will likely not interfere in the shutdown of the pipeline, as there are other potential legal avenues that clear a path for the pipeline to be taken out of service. The political capital cost does not warrant action when the same fate for the pipeline could be reached in lower courts
- EIA weekly data is due at 9:30 am CST
- U.S. Crude Inventories: + 375 MBbls (Avg. Bloomberg surveys)
- U.S. Gasoline Inventories: + 947 MBbls
- U.S. Distillate Inventories: - 333 MBbls
- U.S. Refinery Utilization: - 0.38% change