Review of EIA Weekly Report for August 24th 2022

The EIA released the latest weekly report, and there is a sliver of demand destruction. The numbers do seem to suggest it and the day's supply of 23.8 from last week has edged up to 24.3 on this week's report.

Gasoline Inventories slipped a mere -27,000 barrels from last week. That gain in day's supply was in spite of a healthy 2MBbls of export more than import

The market for gasoline is still declining, and looks to continue with this report. According the the AAA, the national average has slipped 6¢ from last week, and my guess... there is room for another 24¢, although weather may become an obstacle at this point. 

Crude stocks fell 3.2M BBLS from last week and exports of crude and petroleum products outpaced imports by 2.2M BBLS. WTI is up about $6 from last week.

Diesel fuel at the pump broke the string of price drops as of this morning. 

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The day's supply continues to slip in this category. 

Natural gas propelled upward, but is now falling back slightly. The Freeport restart has been moved back to November. 

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It has become popular to used the term Barrels of Oil Equivalent, so simply multiply the above dollar values X 5.8. You can then use whatever forex conversion method to achieve the price in your currency.

While most of my articles contain opinions, I will now vent...

Generally speaking, countries throughout the world and their lackeys (Media) point out the failures of someone else, to deflect problems within. It is sort of in the vein of "we don't have so bad, when you consider how things are in that other country."

The issue in Europe over natural gas prices, does not get a lot of mention in the U.S. mainstream media. I expect that to change as the talk surrounding electric bills and some 20M households are behind on those bills. 

While natural gas is nowhere as high in the U.S. as elsewhere... some things that pique my interest.

• Natural gas is likely to surge come reopening of Freeport on November 1st..
• 40% of U.S. electricity is derived from natural gas.
• The SPR release is slated to end on October 31st.
• OPEC is discussing a reduction of crude, to stabilize the market. 
• Last month's CPI at 0.0% month to month will likely be repeat for August. Solely based on gasoline prices falling. (Nothing else) (The gasoline index fell 7.7 percent in July and offset increases in the food and shelter indexes, resulting in the all items index being unchanged over the month. - BLS)
• Electricity and N/G are up 15% and 30% from last year, and rising fast.
• Food prices have not indicated any moderation of prices.
• There are already 20M households behind on energy bills.

I have no doubt, that by January, the European issues with heating, economy, etc. will be a daily feature in U.S. media. Conversely, European media will no doubt be talking about the dire situation of poor Americans. 

It's all deflection from misery in the home country, imo.  

One other note, the gasoline index appears to be headed for a near -10% fall from July, yet the all items index, will likely be 0.0%. The fall in gasoline is masking inflation in other areas.

Not sure what the winter weather forecast might be, but morale might be dark and gloomy in many areas.