Summary of Weekly Petroleum Data for the week ending March 5, 2021 ..............................................
U.S. crude oil refinery inputs averaged 12.3 million barrels per day during the week ending March 5, 2021 which was 2.4 million barrels per day more than the previous week’s average. Refineries operated at 69.0% of their operable capacity last week. Gasoline production increased last week, averaging 9.0 million barrels per day. Distillate fuel production increased last week, averaging 3.7 million barrels per day.
U.S. crude oil imports averaged 5.7 million barrels per day last week, decreased by 0.6 million barrels per day from the previous week. Over the past four weeks, crude oil imports averaged about 5.6 million barrels per day, 11.7% less than the same four-week period last year. Total motor gasoline imports (including both finished gasoline and gasoline blending components) last week averaged 577,000 barrels per day, and distillate fuel imports averaged 472,000 barrels per day.
U.S. commercial crude oil inventories (excluding those in the Strategic Petroleum Reserve) increased by 13.8 million barrels from the previous week. At 498.4 million barrels, U.S. crude oil inventories are about 6% above the five year average for this time of year. Total motor gasoline inventories decreased by 11.9 million barrels last week and are about 6% below the five year average for this time of year. Finished gasoline and blending components inventories both decreased last week. Distillate fuel inventories decreased by 5.5 million barrels last week and are about 4% below the five year average for this time of year. Propane/propylene inventories were virtually unchanged last week and are about 15% below the five year average for this time of year. Total commercial petroleum inventories increased by 1.3 million barrels last week.
Total products supplied over the last four-week period averaged 19.2 million barrels a day, down by 7.1% from the same period last year. Over the past four weeks, motor gasoline product supplied averaged 8.1 million barrels a day, down by 11.2% from the same period last year. Distillate fuel product supplied averaged 4.2 million barrels a day over the past four weeks, up by 3.1% from the same period last year. Jet fuel product supplied was down 29.8% compared with the same four-week period last year.
Black Blade (a.k.a. Dennis Erectus):
This week's EIA Petroleum Inventory Status Report is NEUTRAL to SLIGHTLY BULLISH as Crude inventories increased by a whopping 13.8 million bbls while Total Commercial Petroleum Inventories decreased nearly 1.3 million bbls as refinery utilization increased slighty to around 69%. Meanwhile, other refined products also decreased sharply again as refiners were largely shut down during the "Great texas Freeze" last month. Repairs are going slow and so refined products are quickly flowing out of inventory and refinery throughput isn't keeping up with demand. Supplies have slipped below the 5-year-average now and will likley deplete further. When Texas refiners do finally open back up there will be more than enough crude to run for several weeks to fill the need for refined products, Oddly enough we don't see that much of an increase in imported refined products. One other issue beyond the reduced refining capacity is that many in Texas and surrounding states are still n panic-mode buying up supplies including fuels for generators and transportation. The Rig Count rose by one solitary rig last week but as oil prices rise we should see more rigs for oil and gas added to drilling programs in coming weeks where they are allowed (non-government land and waters).
In other news the geoplitical situation in the Middle East is deteriorating fast. The Houti Rebels (actually Iran) fired drones and missiles at the Saudi processing fcility this week. The Saudis continue to press the war with Yemen and the Houtis as the Yemeni government losses it's grip on power and Iran moves in to fill the void making neighboring Yemen an Iranian "puppet state" right on the Saudi souther border open to invasion of Saudi Arabia. Makes a precarious situation for the western powers including the US which are still dependent on a Saudi Arabia able to supply a fungible commodity like oil to the Western and Asian nations. The US has now stepped up the war in Syria adding more troops and medium range missiles. A suspected attack on an oil truck convoy a couple weeks ago has been attributed to a possible attack by an Iranian backed faction. Israel's Netanyahu government informed the Biden Administration that they will not allow Iran to have nuclear weapins and leave open the option to preemptively attack Iran at any time.
As for the "Blade Portfolio" we are holding our personal defense and security stocks RGR, SWBI, MACE, POWW and MAGS. A noticable decline in buying actively ate retail outlets for guns and ammo has been noted as ammo shelves are bare with a few exceptions to various numting rifle calibers and gun shelves are empty with a few hunting rifles and a few shotguns in the racks and a very thin selection of lower and medium priced handguns. Online sales are taking over but buyers are not to be found as there's little offered at retail brick and mortar sites. When some popular firearms and ammo calibers do show up for sale they disappear fast as the new Democrat Gun Control laws are to be voted on in the House either thhis week or next. The Dems own the government so it's widely expected that many of these laws will be passed and signed into law. The hope is that firearms bought now will be "grandfatehred in" and allowed to be possessed by US citizens. There's the "Universal Gun Background Check" and the second bill, sometimes inaccurately described as legislation to close the “Charleston loophole,” would undermine the Second Amendment right by permitting the federal government to delay a firearm transfer indefinitely without proof that the transferee is prohibited from possessing firearms. Joe Biden is pushing Congress to also introduce a new "Assault Weapons Ban" and a "Magazine Ban" on firearms magazines capable of holding more than 10 rounds of ammo.
Silver and Gold prices are getting hammered lately. However, we continued to add shares of miners and recently added more shares of GFI, AUY, BTG and KL this last week as we begin a new "dollar-cost-averaging" on miners and have just this week been buying physical Silver American Eagles (which mysteriously appeared at local vendors) although premiums remain quite elevated to Spot Price. That's the "new normal" and we just accept that as the "physical price" as opposed to the "paper price" (Spot) especially as inflation rates are accelerating quickly ("real world" inflation vs the bogus BLS "Official Inflation"). Our Cryptocurrencies continue to make wild swings in price but we now sit at BTC at $57,000 thats dragging along the other Cryptos for the ride. We continue to hold BTC, ETH, ETC, LTC, MKR, TEZOS, XRP ALGO, COMP, CGLD, GRT and BAND. We hold most ours in a "cold wallet" device (Trezor) separate from the internet "hot wallet" services though we do have some in the Coinase and Gemini exchanges, as well as some in our smaller investment accounts primarily for online trading purposes.
We continue to add shares of RIG, KOS, MVO, ET and EPD while holding steady on our shares of DMLP, SPH, T, VZ, HEP, IRM, PPL, CAPL and GRME. We continue to add to our eREIT FUNDRISE. Our own rentals are occupied with stable renters and continue to provide decent cash flow. We now have two of our stripper wells up and operating and one more still under reconditioning and should be back to work in the next couple weeks. Our other stripper well remains idled and on care and maintenance but we are looking to have it back online in the next couple months after further assessment and casing work. We remain cautious looking to restarting our drilling program in a few weeks. Much depends on the Utah "Black Wax" oil price increasing to make te venture profitable (even with forward hedges). We talking again with drillers, frackers, trucking and other support services. So maybe we could see some movement. We do have to drill at some point to maintain and keep the lease.
As always, get out of debt and stay out of debt, accumulate physical Silver and Gold bullion as "portfolio insurance", and stockpile supplies of long term nonperishable foods and basic necessities into storage. After all we do "live in interesting times". |
