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Download the report from the API: https://www.api.org/products-and-services/statistics/apis-economic-industry-outlook


Russia and oil
https://www.wsj.com/articles/u-s-sanctions-give-russian-economy-an-unintended-boost-1539682201
Ruble is devalued but oil is selling at higher prices - combining to give Russia an extra financial boost

Marine fuel regulations shift global refining
https://www.argusmedia.com/en/news/1773132-marine-fuel-limits-to-renew-quality-premiums-par?backToResults=true
Who will enforce these rules? Will we see shift to compressed natural gas as fuel regulations make traditional fuel more expensive

What is happening in the Permian?
https://www.spglobal.com/platts/en/market-insights/latest-news/oil/101518-permian-oil-output-to-average-355-million-bd-in-nov-up-53000-bd-from-oct-eia
From an oil perspective, the Permian is almost a new Iran. But with more pipeline capacity, how much more could be produced? EPIC LNG to be converted to crude until the crude pipeline is in place. Could be online by Oct 2019.

Dean Foreman
API Monthly Statistical Report
Good news: production sets new record for US - 11 million barrels per day in oil production. exceeding world oil demand growth
Bad news: normal slowing, more pronounced demand slow down this year

Crude inventories are up, refinery runs slowed.

Jet fuel demand - brightest of bright spots for US in terms of production and demand. Along with diesel fuel is a good indicator of how economy is going. Economic activity is good! A little stronger than GDP, but this is the relations expect to see with economy.

U.S. petroleum exports - last month saw decrease in US petroleum exports. China bought no crude oil from the US in August. Buying patterns are shifting. Largest increase in exports this month following largest decrease month before. Willingness of global customers to buy US oil, especially considering WTI discount compared to Brent.

Bottlenecks in US infrastructure - there are other ways to bring oil to market. With price differential increasing demand, the market will find ways to work.

Upstream productive potential continuing to produce economic value. U.S. is gaining advantage where it can compete in global energy markets. Relatively speaking US is isolated from that. price differential is a good sign that U.S. oil market is.

Oil market disruptions - how long would it take for the market to reorient itself? Within two months the market could redirect barrels as long as the barrels are on the market.
"US industry\'s near term deliverability is as best as its ever been."

US is producing record amounts on only half the rigs that were in use in 2014.

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