Addendum to US crude supplies at 35 month low; Total oil and product supplies at 6 1/2 year low – Angry Bear (angrybearblog.com) by RJS
Authors of Angry Bear Posts and I converse from time to time. We talk about what they write, what its content implies, and what they are thinking. This note came from RJS at Marketwatch 666, etc. Keep it mind as oil production has not returned to prior levels as of yet. The US has been drawing down its underground reserve it set aside for issues we have been faced with over the last few months.
RJS: As I have mentioned previous, the six and a half year low for inventories, I am citing isn’t making headlines elsewhere because most analysts only look a commercial supplies. They ignore the ongoing depletion of the Strategic Petroleum Reserve, which is included in the metric I cite.
There was one case where an SPR storage location needed to be drawn down because of deterioration of the site. Most of the decrease in the SPR came as Congress or the president wanted to offset other spending and minimize the impact on the deficit, so they sold some of the oil we put away for a rainy day.
So let’s hope that rainy day never gets here.