The last two weeks oil inventories fell by a record 20 million barrels, this event has never happened in 30 years of historical data. So what the heck is going on here? It is not the case that this is the best economy in the last 30 years. It sure isn`t the case that Americans are using more fuel right now compared with any other time period during the last 30 years.
Peak Demand Era
In fact, the US market is maturing and using less fuel these days for
several reasons like alternative energy, higher fuel efficiencies, fuel
blending requirements, and a struggling economy with the highest rate of population on food stamps.
Supplies at Record Highs
Sure refiners are running at their highest rate of the year in the 92%
range, but that is all normal for this time of the year. Yet this two
week drawdown has never happened before, and curiously it happened as
supplies were at record highs.