This is not good news for the average bear.

Wow! You're looking at the largest weekly drop in history! pic.twitter.com/I5nexh7SxD

— Eric Nuttall (@ericnuttall) August 2, 2023

If you’re into charts, falling off a Bidenomics cliff looks like this:

OIL MARKET: American commercial crude stockpiles plunged last week by 17 million barrels — the **largest weekly drop** in data going back more than 40 years. pic.twitter.com/gQeHWD4P6P

— Javier Blas (@JavierBlas) August 2, 2023

Now, I don’t know where you live, but in our Northwest Florida neck of the woods, gasoline prices have spiked up about 30¢ gal over the past week. I certainly wasn’t looking forward to any news like that eventually making things even more expensive. Regular is sitting a shade over $3.55 gal around town at the moment. I suppose I’ll remember this moment fondly in a month or two.

The markets had a bit of a rally on the news, which is never good news for anyone who has to buy petrol.

Oil prices eased on Wednesday after sharp gains, but remained near their highest levels since April, as crude and fuel product inventory data showed robust U.S. demand and offset concerns about the Chinese economy.

Brent crude futures for October last slipped 79 cents, or 0.93%, to $84.12 a barrel. U.S. West Texas Intermediate crude for September fell 91 cents, or 1.12%, to $80.46 a barrel.

Both contracts rose by more than $1 earlier on the session, buoyed by falling U.S. stockpiles.

U.S. crude inventories fell by 15.4 million barrels in the week ended July 28, according to market sources citing American Petroleum Institute figures, compared with analysts’ estimates for a drop of 1.37 million barrels.

If the U.S. government figures, due later on Wednesday, match the API drawdown number, it would mark the largest drop in U.S. crude inventories according to records dating back to 1982.

Gasoline inventories fell by 1.7 million barrels, the API data showed, compared with estimates for a 1.3 million barrel drop. Distillate stocks fell by 510,000 barrels, compared with analysts estimates for a build of 112,000 barrels. Both are indicators of robust prompt fuel demand in the U.S.

Oh, yippee – the bulls are grabbing the oil barrel baton. Bob McNally, president of Rapidan Energy Group says we all get to look forward to a “SHARP oil price rally” come this fall.

It’s the biggest energy pain point for consumers by far

Timing is awful as Fed nears its goal of curbing inflation

Biden’s popularity is at risk

Just terrific.

That last bullet cracks me up – Biden’s “popularity” – BWAHahahaha.

Another point McNally makes is that Chinese demand is “not weak,” and that the Chinese are hoarding. You know what he says they’re doing?

“The Chinese are building their strategic reserves.”

Well, isn’t that the oddest thing, speaking of Biden and “popularity.” You know what POTATUS has been doing to keep people off his back about gas prices and keep those not-so-rosy poll numbers barely above water?

The exact opposite. He’s been selling OUR SPR TO the Chinese, among others. It’s “strategic” for Biden only in the sense that it’s a tactical move to drain a national asset for his benefit.

You know when we’re going to refill those in case, like, we need the stuff for a war with…I dunno. Somebody?

You can't make this up:

Crude oil prices are about to hit $80 again and gas prices nearing $4.00.

In October 2022, President Biden announced that the US would refill the Strategic Petroleum Reserve (SPR) when oil prices fell to $67-72.

Every single time this has happened,… pic.twitter.com/mXtO14cxDi

— The Kobeissi Letter (@KobeissiLetter) July 25, 2023

At this rate we are filling it – never. There’s going to be a sucking sound like a straw hitting the bottom of the sloppy Slurpee cup Uncle Joe’s drained to the last ice crystal.

The US just announced they are delaying refilling the Strategic Petroleum Reserve (SPR) again.

They deemed "market conditions" made it "too expensive."

This is the 6th US attempt to refill the SPR that has failed.

Oil prices have created a global energy war.

(a thread)

1/8

— The Kobeissi Letter (@KobeissiLetter) August 2, 2023

We’re already IN a war – only one waged in markets and in dollars…so far.

And we do NOT have the generals we need in any way, shape or form to pull us out in one piece, God forbid something real goes down.

Bidenomics, baby.