“Davidson” submits:
Low refinery inputs continue to lead to strong gasoline draws and only a minor reduction of US Crude Inventories leaving current US Crude levels ~15mil BBL above the 5yr move avg. Gasoline inventories are almost as low as typical end of summer drawdown which occurs in November when we typically have had a period of 6mos with strong refinery activity.
This is setting up for a sharp drawdown of US Crude inventories once expanded refinery capacity comes back online.
The next 6mos could be setting up for a major surprise for traders not watching these fundamentals develop.
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(Click on image to enlarge)
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