“According to Reuters, the US currently has just 17 days of supply left in the Strategic Petroleum Reserves (SPR).
This is roughly half the historical average of ~33 days dating back to 1990.
Meanwhile, oil prices are still almost 30% above the target price the US set to refill them.
Tomorrow, an OPEC meeting kicks off to discuss ongoing production cuts.
The SPR situation is one of the largest strategic weaknesses of the US.”
Tomorrow’s OPEC meeting is going to set the tone for oil markets into year-end.
We do not expect OPEC to take their foot off of the pedal.
OPEC has proven many times, they are committed to higher oil prices.
Follow us @KobeissiLetter for real time analysis as this develops.
— The Kobeissi Letter (@KobeissiLetter) October 3, 2023
History seems to be rhyming every day now.
— The Kobeissi Letter (@KobeissiLetter) October 3, 2023