US produces and consumes 20mn bpd of crude oil equivalent. But on top this, the US is exporting 10mn bpd to its “allies” – European, Asian and Australia. Thus, the US is draining its own oil reserves by 10mn bpd to subsidise these areas.
This, as the report shows, is unsustainable. It means US reserves will hit the minimum level of 30-days of consumption by the end of summer. For the moment the US political rhetoric is that exporting oil is great for the US. Sure it is if it is coming from production. But it is not! It is draining stocks.
The political rhetoric will change as the storage tanks empty and prices at the pump start to rise again.
This report has a final chapter! What happens when the US cuts its oil subsidies to "allies"? Europe is first in the firing line. Read on for what will be the effect and how to invest for it.
Loading Document...
Comments
No Comments Yet