Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your experience. Save up to 40% More details

The Energy Report: Despite It All, Bullish Trend In Crude Refining In Upswing

By Phil FlynnCommoditiesJun 10, 2021 08:57AM ET
The Energy Report: Despite It All, Bullish Trend In Crude Refining In Upswing
By Phil Flynn   |  Jun 10, 2021 08:57AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items

The world is going through a crazy time of futile and stupid gestures.

Environmentalists have gone full Animal House in winning a futile and stupid gesture by finally killing for good the Keystone XL Pipeline. They celebrated the news that Canada’s TC Energy Corp (NYSE:TRP) finally gave up and is walking away from the Keystone XL oil pipeline project.

All the while these so called environmentalists are wearing their petroleum-based outdoor clothing and shoes and use their petroleum-based gear as they add to greenhouse gas emissions, not reduce it.

You see when their questionable science becomes religion, sometimes common sense must be forgotten and the facts ignored. Like the fact that after numerous studies show that killing a petroleum transport pipeline has no measurable impact on greenhouse gas emissions, we'll see more carbon emitted as oil and gas will now be transported by truck and rail.

Or the futile and stupid talks with Iran as the U.S. State Department says they are deeply concerned that Iran has yet to provide IAEA with information; the agency needs to resolve questions regarding potential undeclared nuclear material. The crude oil market is starting to understand that a deal with Iran is getting less likely.

Not only is our Secretary of State, Anthony Blinken, saying he doubts that Iran will comply, but the terror sponsor regime is also now sending warships to our hemisphere. The U.S. is warning Iran that we will not tolerate weapons transfers. Iran seems to be ignoring a lot of warnings lately.

The Tasnim news service says that, “An Iranian Navy flotilla that includes a new sea base-like ship and a destroyer has entered the Atlantic Ocean, a senior commander said. Deputy Chief of the Iranian Army for Coordination, Rear Admiral Habibollah Sayyari, told reporters on Thursday that the Makran forward base ship and Sahand Destroyer have arrived in the Atlantic Ocean for the first time without any port calls in other countries. He added that it shows the power and robustness of the Islamic Republic of Iran.

Last week, the two vessels were reported to have rounded the Cape of Good Hope, heading toward the Atlantic Ocean. In recent years, Iran’s naval forces have increased their presence in international waters to secure naval routes and protect merchant vessels and oil tankers against pirates. In comments in October, Navy Commander, Rear Admiral Hossein Khanzadi, said Iran’s first homegrown auxiliary ship is capable of sailing around the globe three times without being refueled.

There is concern that Iran is going to establish a military presence in Venezuela to be more of a threat to the U.S. homeland.

Oil prices pulled back a bit after the Energy Information Administration report seemed to raise concerns about U.S. gas demand. U.S. gasoline stockpiles have jumped 7 million barrels, the highest in three months, while the EIA “Implied Demand” fell to a three-month low Wednesday.

Yet looking at U.S. weekly gas demand data in the aftermath of the Colonial Pipeline is futile and stupid because the data is off. First, everyone filled their tanks early. Next, we saw a flood of imports from Europe, and the waiver of the Jones Act had supplies moving in places where they do not normally move. Total motor gasoline imports (including both finished gasoline and gasoline blending components) last week averaged 1.1 million barrels per day.

Energy Expert Robert Gibbons points out that last week’s demand drop was after several weeks of gasoline moved into secondary and tertiary tanks, first because of Colonial, then ahead of Memorial Day. Colonial-induced tank topping slowing or stopped wasn’t unexpected.

So the next few weeks should be more informative. Also, if you look at the 4 week average it is more telling. Over the past four weeks, motor gasoline product supplied averaged 9.1 million barrels a day, up by 23.2% from the same period last year. The EIA reported that crude supply fell by 5.241 million barrels as refiners ramped up and distillates by 4.412 million barrels.

The most bullish aspect of crude was the refining. They’re back! The EIA says that U.S. crude oil refinery inputs averaged 15.9 million barrels per day during the week ending June 4, 2021, which was 327,000 barrels per day more than the previous week’s average.

Refineries operated at 91.3% of their operable capacity last week. Gasoline production decreased last week, averaging 9.4 million barrels per day. Distillate fuel production increased last week, averaging 4.9 million barrels per day. U.S. crude oil imports averaged 6.6 million barrels per day last week, increased by 1.0 million barrels per day from the previous week. Over the past four weeks, crude oil imports averaged about 6.2 million barrels per day, 1.9% less than the same four-week period last year.

The Energy Report: Despite It All, Bullish Trend In Crude Refining In Upswing

Related Articles

Craig Erlam
Oil Rises, Gold Tumbles On Fed By Craig Erlam - Jan 27, 2022 2

Oil prices are making decent gains again on Thursday, with Brent once more above $90 ,which is naturally leading to talk of $100 oil and when it will happen. The environment...

The Energy Report: Despite It All, Bullish Trend In Crude Refining In Upswing

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (1)
Serguei Rus
Serguei Rus Jun 11, 2021 2:08AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
I trust you and adding. I hope you are a responsible person.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
Sign up with Email