Less supply, more demand… WSJ – Commodity Research Group

May 23, 2020 by Jim Colburn Leave a Comment

David Hodari, Wall Street Journal, explains the oil rally, here…

““We didn’t see tank tops at Cushing. Instead we’ve seen phenomenal levels of shut-ins,” said Edward Marshall, a commodities trader at Global Risk Management, referring to the act of oil producers turning off wells to choke supply.

A pickup in refiner demand to supply Americans getting back on the road has helped WTI’s recovery. Pipeline flows from Cushing to Midwestern refiners are 400,000 barrels a day higher than they were in early April, according to commodity-market information provider Genscape.“

And this:

”Another sign that physical oil markets are returning to normal: The amount of oil being stored and transported at sea has started to unwind. Total floating storage of crude, diesel, gasoline and jet fuel fell to 258 million barrels on May 21, down 7% from the recent peak on 14 May, according to oil analytics company Vortexa.”

Commodity Research Group (CRG), founded by veteran analyst Edward Meir, is an independent research consultancy specializing in base and precious metals, as well energy products. The Group provides research and general price analysis for these markets, along with advice to companies seeking to construct commodity hedging strategies.

Our associates bring decades of experience to the table, as they seek to help our clients understand the markets. CRG will distill the myriad of pricing variables mentioned above into coherent research that is to-the-point and tailored to a clients hedging or pricing needs. In addition, CRG is available for consulting assignments and speaking engagements. CRG does not manage money or trade for itself.

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