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    LAST CALL! HEDGEYE’S CYBER MONDAY
    SPECIAL EVENT

    OUR BEST DEAL ALL YEAR JUST GOT BETTER

    LIMITED-TIME OFFER... THEN IT DISAPPEARS

Editor's Note: Below is a note written by Hedgeye editor Eric Wallerstein and Junior Macro analyst Ryan Ricci. For more insights like this, sign up for our free Weekend Reading newsletter.

No Rest For The WTIcked | Crude Oil Inventories Remain (Brutally) Low  - oilcartoon

Crude Oil remains in a sticky situation, with WTI inflating roughly +10% year-to-date with inventories decelerating to -14.3% year-over-year (versus the prior -13.9%).

For context, inventories are a mere +0.16% above their 5-year low (this was a sequential acceleration from -0.4%, but brutally low nonetheless.)

No Rest For The WTIcked | Crude Oil Inventories Remain (Brutally) Low  - crude113

Constrained supply, weaker dollar, and Coronavirus lockdown fatigue (Omicron just isn't that bad in terms of severity) = higher prices.

Adding fuel to the fire, the U.S. has the the largest appetite for oil by far, consuming ~18 million barrels per day (good for 20% of global consumption). For comparison, China comes in second at ~14 million barrels per day (14% of the world's total). 2019 #'s, per EIA.

And while we're pumping out crude at fairly normal levels, imports are sitting -2.7% below their 5-year low. 

No Rest For The WTIcked | Crude Oil Inventories Remain (Brutally) Low  - prod113

No Rest For The WTIcked | Crude Oil Inventories Remain (Brutally) Low  - import113

While OPEC & co. play a big role here, WTI looks stuck at higher levels (at least for now) until supply constraints resolve (along with myriad factors). We'll keep you posted intermittently as the situation develops.

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