Oil prices are masking the real shortage
Crude oil is on every front page. Diesel is in every supply chain.
U.S. distillate inventories sit 5% below the five-year average while Middle Eastern and Asian refineries have cut runs by 6 million barrels a day because feedstock cannot get out of the Gulf. The heating oil to Brent crack nearly doubled in one month.
When diesel breaks, inflation follows.
Reply “LETTER” for the breakdown on how macro factors like diesel affect your portfolio.
This is educational only not investment advice or a recommendation to buy or sell any security or commodity.
16 Comments
Uncomfortable is better than invaded. But yes, we're uncomfortable with the price of gas right now
So true, but why doesnt it include the shortage? Less normaly means higher prices, or am I missing smth? Anyway thanks fir the update. Letter
What are your thoughts on China running out of their oil reserves on or about June 8th. 50% of their oil comes from Iran. They have an approx 100 day reserve and oil distribution began on or about feb 28. It takes on average 18-22 days to sail from Iran to the South China Sea 15-17 if the tankers don’t worry about their fuel consumption. Walking back from June 8 if there isn’t a resolution on the blockade by mid May things could be bad for China’s manufacturing and the world’s supply chain again.
Apparently you didn't know the USA is the worlds largest oil deposit 😂😅
the internal US economy runs on Diesel. the world economy runs on crude. technically bunker grade heavy oil that drives ships that carry the goods across water.
Letter
I would like to know your thoughts on how, at least I, keep seeing bad news, or what should be bad news. but there seems to be a rally.
Letter
letter
Plenty of oil! Price is already plummeting. Diesel will be $4/gal or less or a few weeks.
The economy runs on tokens and sales calls
No crude necessary, no diesel needed, no fuel issue other than in your mind
Letter
Hey hey hey, one FRAC per day!
Letter, have not recieved yet, thank you
LETTER
letter