It is rather telling in comparing the distillate demand on the chart for this time last year with this year. For example last year we were at 3.943 million barrels per day, and this year we are at 2.832 million barrels per day. That is more than 1 million barrels per day difference in demand, quite striking, but again this number moves around a lot depending upon several factors from week to week. For example, just two weeks ago we were at 3.633 million barrels per day for distillate demand.
My biggest takeaway is that the Shale community is in major denial right now. They are so distorted from reality that it is like Enron right before the crash when they were doing barge deals with Merrill Lynch to make their debt seem better by being hidden off the balance sheets. Something bizarre is going on in the Shale world as we should be seeing major cutbacks in shale production at $30 a barrel oil. At any rate, the drop didn`t come this week. We will wait for the next EIA report for signs of this expected drop in U.S. Production that we think is coming down the pike.
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