Refining Inputs Rising…Inventory Falling

Hedge Fund Manager, Owner of ValuePlays and Angel Investor • Jun 26, 2019 at 2:10 PM EDT

Today the data showed US crude inventory fell 12.79mil bbl (the largest decline in almost 3 yrs). Expectations were for a 2.8M bbl draw.

As we’ve been saying for a while now, as refining inputs increased to more normal levels, inventories would fall…

Today the data showed US crude inventory fell 12.79mil bbl (the largest decline in almost 3 yrs). Expectations were for a 2.8M bbl draw. While refining inputs are rising, they have stayed relatively low historically. Gasoline inventories are falling with summer demand. We currently remain ~25mil BBL above the 5yr avg. US crude inventory trend, but not for long.

(Click on image to enlarge)

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