Post

George Pearkes
@peark.es

Easiest way to see this is US commercial inventories. Low, especially compared to the last 10y, but very much not apocalyptic.

Nikolas Gvosdev@fpriorbis.bsky.social

This also speaks to commodities traders having Ali Baba caves of supplies … follow the use of tankers as floating storage … www.bloomberg.com/opinion/arti...

bloomberg.comThe Global Oil Cushion Isn’t Really Hitting ‘Tank Bottoms’The energy industry’s latest panic is that it’s about to hit “tank bottoms” — the minimum amount of crude in storage required to keep the conveyor belt that goes from oilfields to refineries humming. ...

20 reposts120 likes

George Pearkes
@peark.es

...no? You're talking about the strategic reserve. This, as explicitly noted in the post, is COMMERCIAL inventories.

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Andy Waddington
@thewaddingtons.com

So a few months ago the US had about 800 million barrels of reserves about evenly split between commercial and spr. And now we're at 700 million with commercial reserves about unchanged and the spr down 100 million.

Andy Waddington
@thewaddingtons.com

Is there a reason why commercial inventories haven't changed yet other than the Feds are willing to sell from the strategic reserve so there's no incentive for businesses to change their strategy around inventory?