- Oil rallied yesterday after the EIA STEO report forecast oversupply next year, pouring cold water on expectations of an immediate emergency stock release
- The White House said it continues to look at all the tools it has available to limit the impact of high prices on consumers
- The White House, in other news, pledged to discuss a key pipeline that carries Canadian crude through Michigan, stressing the U.S. isn’t considering a shutdown of the pipeline the state’s governor wants to be closed (Bloomberg)
- Press secretary Karine Jean-Pierre told reporters on Tuesday that the U.S. and Canadian governments will “engage constructively” on the future of Enbridge’s Line 5 pipeline
- AEGIS notes Line 5 is a twin pipeline that supplies 55% of Michigan’s propane needs. Overall, Line 5 transports up to 540 MBbl/d of light crude oil, light synthetic crude, and NGLs, according to Enbridge
- Supply increases next year from OPEC+ as well as U.S. operators will ultimately pressure prices lower (EIA)
- “We forecast that global oil stocks will begin building in 2022, driven by rising production from OPEC+ and the United States, along with slowing growth in global oil demand,” the EIA said
- Global oil supply is set to average 101.42 MMBbl/d in 2022, while worldwide demand is estimated to be 100.88 MMBbl/d, according to the agency