https://oilprice.com/Energy/Crude-Oil/An-Oil-Supply-Shock-May-Be-Imminent.html
"Oil demand has remained resilient in the face of a multitude of challenges, and even prices of over $100 per barrel failed to curb it in any significant way earlier this year. Now, prices are somewhat tempered, but the embargo is still about two months away. Once this kicks in, prices are bound to jump because alternative supply is limited. And the U.S. will need to start refilling its SPR at some point because it is getting depleted.
The Wall Street Journal sounded the alarm on that problem this week. Author Jinjoo Lee cited the Energy Information Administration as saying the inventory level at the SPR had declined by another 7 million barrels in the week to September 16, meaning the total was 427 million barrels. And this number was the lowest SPR inventory level since 1984. It is also the first time there is less oil in the SPR than in commercial storage, Lee noted.
Perhaps worse is the fact that the administration has no plans to start replenishing the SPR anytime soon. In a report from earlier this month, the Department of Energy denied a report by Bloomberg that it was waiting for oil prices to dip below $80 per barrel to start refilling the SPR.
This suggests the DoE has no immediate plans to start filling up the SPR, and this is a cause for worry because oil supply shocks tend not to be obvious until they become painfully so. And a supply shock is definitely coming to Europe if the U.S. is not there to help. Add to this the moderate growth in U.S. oil production and statements by industry executives that U.S. won’t be able to bail Europe out with oil or gas, and the situation becomes quite bleak."
"The evidence is right there under all our noses: Europe. For all its efforts to convert to the lowest emitter in the world—which it did for a while—Europe thrived not on cheap solar and wind but on cheap gas and abundant oil. Now that these are gone, European economies are beginning to fall apart.
Avoiding a supply shock in oil would be difficult in the current circumstances. The OPEC+ shortfall is not all a result of conscious action. In fact, most of it is not, and this means it would be almost impossible to make up for. And the U.S. can’t afford to continue drawing on its SPR for much longer without doing something in the replenishment department. It’s called strategic for a reason, after all."
Every oil/gas decision the Biden Adminions have made, creates even worse problems for the USA and world to face not long after.
Micro-managed Reactive on steroids.
"Oil demand has remained resilient in the face of a multitude of challenges, and even prices of over $100 per barrel failed to curb it in any significant way earlier this year. Now, prices are somewhat tempered, but the embargo is still about two months away. Once this kicks in, prices are bound to jump because alternative supply is limited. And the U.S. will need to start refilling its SPR at some point because it is getting depleted.
The Wall Street Journal sounded the alarm on that problem this week. Author Jinjoo Lee cited the Energy Information Administration as saying the inventory level at the SPR had declined by another 7 million barrels in the week to September 16, meaning the total was 427 million barrels. And this number was the lowest SPR inventory level since 1984. It is also the first time there is less oil in the SPR than in commercial storage, Lee noted.
Perhaps worse is the fact that the administration has no plans to start replenishing the SPR anytime soon. In a report from earlier this month, the Department of Energy denied a report by Bloomberg that it was waiting for oil prices to dip below $80 per barrel to start refilling the SPR.
This suggests the DoE has no immediate plans to start filling up the SPR, and this is a cause for worry because oil supply shocks tend not to be obvious until they become painfully so. And a supply shock is definitely coming to Europe if the U.S. is not there to help. Add to this the moderate growth in U.S. oil production and statements by industry executives that U.S. won’t be able to bail Europe out with oil or gas, and the situation becomes quite bleak."
"The evidence is right there under all our noses: Europe. For all its efforts to convert to the lowest emitter in the world—which it did for a while—Europe thrived not on cheap solar and wind but on cheap gas and abundant oil. Now that these are gone, European economies are beginning to fall apart.
Avoiding a supply shock in oil would be difficult in the current circumstances. The OPEC+ shortfall is not all a result of conscious action. In fact, most of it is not, and this means it would be almost impossible to make up for. And the U.S. can’t afford to continue drawing on its SPR for much longer without doing something in the replenishment department. It’s called strategic for a reason, after all."
Every oil/gas decision the Biden Adminions have made, creates even worse problems for the USA and world to face not long after.
Micro-managed Reactive on steroids.
