The Drain of the SPR Continues….

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valueplays
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I’m genuinely shocked more people are not talking about this….

Q3 2022 hedge fund letters, conferences and more

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“Davidson:” submits:

  • Total US Crude Inv rises 5.5mil BBL(a rise of 10.2mil BBL in working & decline of 4.2mil BBL SPR) US Crude Prod declined 0.1 to 12.1mil BBL/Day, Fudge  factor of 2.26mil BBL/Day(15.8mil BBL/Week) unusually large

  • US Refined Prod rose, gasoline ~4mil BBL, slimmer rises in Diesel and Jet Fuel, Refining Inputs declined slightly. US Exports of Refined Prod declined this week.

There was a surprising rise in SPR releases (4.7mil BBL vs 1.4mil BBL 2wks ago) when it was believed that releases were about to turn towards refilling. The continued decline in SPR may pressure the slow US drilling and production to remain so till conditions change.

 

   

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Todd Sullivan is a Massachusetts-based value investor and a General Partner in Rand Strategic Partners. He looks for investments he believes are selling for a discount to their intrinsic value given their current situation and future prospects. He holds them until that value is realized or the fundamentals change in a way that no longer support his thesis. His blog features his various ideas and commentary and he updates readers on their progress in a timely fashion. His commentary has been seen in the online versions of the Wall St. Journal, New York Times, CNN Money, Business Week, Crain’s NY, Kiplingers and other publications. He has also appeared on Fox Business News & Fox News and is a RealMoney.com contributor. His commentary on Starbucks during 2008 was recently quoted by its Founder Howard Schultz in his recent book “Onward”. In 2011 he was asked to present an investment idea at Bill Ackman’s “Harbor Investment Conference”.