Our quick take on the WEEKLY SUPPLY ESTIMATES published by the US Department of Energy (DOE) including detailed tables and charts. This week’s highlights:
Conclusion: At first sight the stats certainly seem less bullish or even bearish with inventories showing a counter-seasonal build and demand appearing much weaker; however, this is essentially due to one number: the large stock build in “other” petroleum products. By experience, this could very well reverse in coming weeks. We believe that inventory draws will continue, which should be constructive for time spreads.
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