Forward Guidance · Friday, October 23, 2026
It was discussed that global oil inventories and reserves are heavily depleted, removing traditional price suppression buffers. Specifically, the US Strategic Petroleum Reserve (SPR) has fallen to roughly 70 days of oil demand left, representing its lowest level in over 20 years and about one-seventh the size of China's reserves.
“with the depletion of global inventories and reserves, it's you've removed the buffers that we use to suppress oil prices or keep them from moving higher throughout the year.”
“We have now... 70 days... of oil demand left in our SPR. This is the lowest in over 20 years. Um, Not, I mean, it's not that we need it to be massive. But that's now like one sixth the size or one seventh the size of China's.”