Gasoline setting records

Oil Outlooks

I’m all for oil independence, but this sure is boring. How is it the energy markets are getting all the action in the stock market? I’d like a little credit here for at least keeping a bullish tone to crude oil. If not for the continued support of oil above $100 in America, who would have ever guessed that two companies like Whiting Petroleum and Kodiak Oil & Gas would merge to make the country’s biggest Bakken producer?

I’ll do my best Bill Cosby impersonation here and remind the teeming millions that the U.S. is far from hitting a peak. We’re just puttin’ the spoon in the pudding…mmm mmm. Fact of the matter, the only thing that the U.S. has hit a peak on in any oil production so far has been in Alaska and the other States that were using conventional drilling.

EIA Guesstimates:

CRUDE (NYMEX:CLN14) -2.5M – I may be going old school, but all I can think about is that Chicago (the band) song, “Does anyone really know what time it is, does anyone care?” We’re going to be pulling more barrels from inventory this week, but with current levels still above 380M, it’s not going to set off any alarms to run back up to $108. Of course the biggest part of these numbers are really about the increase in domestic production and the declining crude imports. The U.S. can fast forward to Peter Cetera’s solo career, “Hard for me to say I’m sorry…”

GASOLINE (NYMEX:RBN14) -1.0M – Try as I might to incite panic into this market, we’re setting records this year on production/blending. Again, we’re making money here and taking it away from everyone who used to import to us. I’d say this number has a good chance to see a bigger draw if demand can pick up and over 9M b/d. So I’m leaning that way, just not ready to commit to that side of the parade.

DISTILLATE +1.5M – If anyone took to heart the issues in Portugal last week (the economy, not the WC team), we might have eased off the pedal for production and maybe even scaled back on exports. We’ll see just how quickly the EIA and the producers play these numbers.

UTILIZATION -0.5% - Now you have to love the fact I was thisclose last week calling for Unchanged. I’m not all that sure I get to win the prize again this week, but I would like the over sized stuffed banana for my troubles please.

CUSHING -1.5M – She’ll be coming around the mountain when she comes. Until then, she’s just coming down the pipelines we have

About the Author

Carl Larry is president of Oil Outlooks and Opinions LLC. Follow him on Twitter (@oiloutlooks) or on his website.

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