Thursday, October 27, 2011
Phil Flynn: Gulf Coast Surprise
These pre salt fields, so-called because they lie under massive layers of salt, are located 18,000 feet below the ocean floor under more than 6,000 feet of salt. Brazil already produces 2.1 million barrels per day (bbl/d) of crude oil and lease condensate, yet just became a net exporter in 2008. Pre salt development, coupled with the ability to meet a large share of domestic demand with Biofuels, is projected to transform the country into a major oil exporter."
You might also blame Rio for the drop in distillates. The EIA say's distillate fuel inventories decreased by 4.3 million barrels last week and are in the middle limit of the average range for this time of year. The drop comes as demand surges for diesel as harvest is underway.
Yet demand for gasoline continues to be poor. The EIA says motor gasoline inventories decreased by 1.4 million barrels last week and are near the upper limit of the average range. Both finished gasoline inventories and blending components inventories decreased last week.
What will be the surprise for today? My guess is a bigger than expected injection on gas storage! Report today!
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