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