Transcription
Okay, good morning everybody. It is July 9th, 2026. My apologies. I had meant to do this video yesterday, but I had a second very late night at work. Um, so I'm going to have to do this one quick because I got to get to work today.
Uh, okay. Oil inventory update. Uh, SPR down another 6.2 million barrels. We had a crude build uh overall of about uh little over 3 million barrels.
Uh, for some other numbers, uh, let's see here. All right, crude uh up three million barrels. Gasoline, we had a draw, which I was surprised by. I thought we'd have a build this week, of 1.9 million barrels. So, we're down. Distillates, think diesel. We're down 5 million barrels. Uh we are at again right about 96% refinery utilization. So, we are we are pounding through. Uh the the refineries are running as hard as they can and they've been doing this for weeks now. I mean, this is this is incredible.
Um total refined exports are nearly 9 million barrels a day. Um another 3 million barrels of crude. We are exporting about 12 million barrels total between uh refined product and crude. We are at record high levels of uh refined product exports.
Um Cushing, we've had a lot of talk about Cushing. Cushing is down another about 70,000 barrels. Now, that's a tiny tiny amount. Incredibly small draw, but keep in mind Cushing was only a few hundred,000 barrels above their absolute minimum just last week. So, the fact that with oil prices very low, at least by recent standards. I mean, basically back to pre-war levels, only slightly above that, and with their uh inventory well below their 20 million barrel threshold, uh they still had a tiny draw. Just this is all mind-blowing stuff here.
Um gasoline inventories seasonally adjusted are at their lowest levels since 2012. Um the crack spread on WTI, in other words, you take you take a uh barrel of oil uh and you turn it into gasoline or diesel, whatever. The difference in price between that, that's called the crack spread, hit a record high yesterday. So, we have record high exports, record high uh crack spread, um and a 14-year low in gasoline supply. And the SPR is at a 43-year low. I know that it's been at a 43-year low for weeks because it just keeps hitting a lower and lower level compared to 1983 when they were still refilling it.
Um, a couple other big parts, big bits of news. One, the last couple of days, the Ukrainians have been on an absolute tear across Russia. They have hit multiple refineries, multiple oil depots, and they have started attacking a lot of commercial shipping um in the Sea of Azov and also the Black Sea. They've hit several tankers. They've also hit just cargo ships, tugboats, all kinds of things. Um, my guess is because the NATO summit is coming on right now, they wanted when everyone was together and chatting for there to be a whole lot of news uh and frankly images of burning Russian oil and gas infrastructure. And oh boy, have they accomplished that.
Um, as of yesterday uh afternoon, the Strait of Hormuz was still running around eh 40 ships a day. Roughly one-third uh or so of one third to one quarter of pre-war levels. Uh that was obviously last night there were extensive US air strikes uh on Iran. Iran attacked several US bases in the region. Uh Iran had attacked three tankers uh a day or two before all this. Um so far as of yesterday, the straight of Hormuz traffic had not really dipped yet. We will see what happens today. I've not had time to check.
Um, the okay uh so sorry what else? Uh China China has taken off their ban on refined product export so their refineries can start ramping up production runs now which means more demand for crude.
Um overall the total US inventory uh I believe last week I was saying they're at a 20 last week they were at a 23-year low. Uh we're down another 10 million barrels to about 1.517 uh billion barrels in the total um that's our total for everything SPR crude stocks uh gasoline distillates everything in the entire US system. We started this war at 1.689 billion. So we are now down gosh 172 million barrels uh total. Uh and it's we just keep dropping. Uh inventories are getting tighter and tighter. Crack spreads on WTI are getting higher and higher. Exports are rising. China's demand looks like it's going to pick up and Russia is absolutely burning. Uh and we have a lot of live ammo popping off across the Persian Gulf. Prices have shot up. Uh they are still way way way below their recent highs.
Um, we will see what happens. Generally speaking, the traders in the financial markets have not cared about inventory. Their point of view is the Fed can just print more oil. Um, and they convinced themselves we had an oil glut and you know, we were just going to need to start filling empty pools and bathtubs. We had so much oil we just didn't even know what to do with it all. U, meanwhile, every bit of data we see shows the same thing, which is that inventories are getting tighter and tighter and tighter and tighter.
Um, SPR draws are probably going to decline over the next few weeks. I'm not sure about that. I could absolutely be wrong. Um, but the last time they did uh one of their auctions when they were going to auction off 40 million barrels, they only found a taker for 500,000 barrels. Um, so basically the oil that's coming out now was auctioned off many weeks ago. We will see. I'm not sure exactly what the lag time here is. Um, but you know, of course there could be another auction tomorrow. Who knows?
Um, so the point of all this is for those of you who are watching wondering what's going on with our oil inventories. Um gas way down, distillate way down, overall crude down, commercial stocks up a few million barrels. Um but that's again because SPR kicked out 6.2 million barrels. Uh China demand probably about to go up. Russia burning down, the middle the Middle East on fire. Um we will see what happens.
Uh, I'm sorry. I know this has been extremely quick and not as good as my other videos, but I have got to get to work and I just wanted to get this out uh before I did. I will try to do something in a little bit more detail.
Um, do not use this as financial advice. Do not use this as investing advice. Um, if you want to make investments in this stuff, please talk to a professional financial planner who can give you proper advice. Thanks you.