Daily Energy Report

China inventories decline, major build in gasoline inventories, Russia’s export ban, India whines—again, Hybrids cheaper than EVs, Offshore wind costs up, Flaring up in Permian, and more

News that made us speechless:

White House prohibiting official travel to fossil fuel conferences, internal memo shows

Germany approves bringing coal-fired power plants back online this winter

Chart of the Day: China’s inventories declined by 48 mb

Summary

Figure (1) above shows trends in China’s oil inventories (commercial and SPR). Chinese companies built their inventories in June and July but as oil prices increased, the government released oil from the SPR, and companies released oil from their inventories. 

EOA’s Main Takeaway

Although we expected the draw, which stood at 48 mb from the peak, we were surprised to see the build between June and August. At current prices, we expect additional draws of 35+ mb between now and the end of the year.

Story of the Day

EIA: Major Build in Gasoline Inventories as Crude Inventories Declined

Summary