There has been a lot of praise for new economic era of Trumponomics; but with petroleum inventories still at high levels, I can’t see a reason to be too happy. Inventories are what push back on production and currently refineries are at around 98% utilization.

chart

From the chart, one can see that petroleum related stocks have been rising after 2001.  First came the shale fracking boom, then came the high production rates of Saudi Arabia around 2015 which sent oil prices down to below $30.

I won’t feel comfortable until I see those inventory numbers drop significantly.  Yes, the news is reporting Trumponomics as spurring high employment with no inflation; but thats like saying that I will be converted from all mass to all energy when I hit the speed of light.

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