Climate Czar John Kerry took a private jet to Iceland in 2019 to receive the "Arctic Circle” award for climate leadership Fox News reported. Of course, one should forgive what one might see as hypocrisy because as John Kerry said so plainly that flying in his private jet is “the only choice for somebody like me”. You see John Kerry deserves special treatment and forgiveness for his carbon sins because as he says he is  “traveling the world to win this[climate] battle."

On the other hand, people like you and those in the energy industry are not worthy to keep their jobs. If you had any dignity and climate consciousness, you would quit your job and go find work in a solar panel plant. The U.S. oil industry dared to innovate and change the world with the fracking revolution. It made the members of the Paris Climate accord, which John Kerry said he helped draft, look bad because they helped reduce the US carbon footprint by replacing coal with a new abundance of shale natural gas. This is a terrible thing that the U.S. energy industry did in Kerry's eyes because it signaled that the world does not need a new energy plan to save the planet. The planet is doing just fine. Kerry and his cohorts prefer to ban all fossil fuels. 

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John Kerry was mighty offended when the U.S. backed out of his climate accord masterpiece. He thinks that because of this terrible offense, the U.S. and their workers should pay a price. Our fearless climate leader says that the U.S. needs to make up for lost time for the withdrawal from the Paris climate accord. U.S. citizens must pay the price and so John Kerry and President Biden will take your jobs and have them relocated to China or India, countries where because of economic reasons, have no choice but to pollute. We must pay the price in higher gasoline and energy costs and reduced economic growth so our beloved Energy Czar can hold his head high when he flies in a private jet to receive his coveted  “Arctic Circle “ Iceberg sculpture award.

OPEC Plus and Russian President Vladimir Putin are happy about it. OPEC plans on regaining market share from the U.S. energy industry and expects that 2021 will be a great comeback year for the group Reuters reported OPEC+ maintained its oil output policy at a meeting on Wednesday as the price of crude hit its highest in almost a year, a sign that deep supply cuts are draining inventories despite an uncertain outlook for demand recovery. A Joint Ministerial Monitoring Committee of OPEC+ met virtually on Wednesday, pronouncing itself “optimistic for (a) year of recovery in 2021,” Reuters said.

The oil futures and I agree with that as demand is rising and OPEC restraint, as well as struggling U.S. oil production, is causing global inventories to tighten. So much so that the world is headed towards a substantial supply deficit in the next year as we continue the oil demand vaccine-related recovery pace. The Energy Information Administration reported U.S. energy production remained steady at 10.5 million barrels a day, down around 3 million barrels a day from a year ago. That drop in output reflects the lower investment and lost jobs as well.

The oil market will continue its uptrend as lower production and less investment will lead to a supply squeeze. TOTAL Petroleum demand fell but refiners ramped up. The EIA reported that U.S. commercial crude oil inventories decreased by 1.0 million barrels from the previous week. At 475.7 million barrels, U.S. crude oil inventories are just 4% above the five-year average for this time of year. Amazingly looking out U.S. supply may fall below average in just a couple of weeks.

Motor gasoline was a weight as we demand dipped for gasoline. Supply increased by 4.5 million barrels last week but are still 1% below the five-year average. Distillate fuel inventories were unchanged last week and are about 8% above the five-year average for this time of year. 

Natural gas backtracked a bit as the cold and snow blast seemed priced in! We get the storage report, and we should have a 180 plus draw. The seasonal pattern though is calling for a top in April in a sign that winter might someday end.