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News Link • Energy

The World Is Entering A 5-Year Period Of Abundant Oil

• http://www.businessinsider.com, EconMatters
 The takeaway isn`t so much that gasoline inventories rose 23 million barrels the last 5 weeks of the year, wow that is some build in inventories, but the fact that Oil inventories barely budged at all during the process.
 
Seasonal issues regarding tax selling in order to move as much oil through the system to avoid higher tax liabilities is primarily responsible for the higher run rates of refineries, and thus the build in gasoline inventories, but that should result in large drawdowns of oil as there is a push and pull between products and the base commodity oil. Yet we end the year slightly above the 370 million barrel mark in US oil inventories.
 
The takeaway isn`t so much that gasoline inventories rose 23 million barrels the last 5 weeks of the year, wow that is some build in inventories, but the fact that Oil inventories barely budged at all during the process.

Seasonal issues regarding tax selling in order to move as much oil through the system to avoid higher tax liabilities is primarily responsible for the higher run rates of refineries, and thus the build in gasoline inventories, but that should result in large drawdowns of oil as there is a push and pull between products and the base commodity oil. Yet we end the year slightly above the 370 million barrel mark in US oil inventories.

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