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Crude Crumbles On Unexpectedly Large Inventory Build
WTI crude oil prices staged a recovery this morning - fueling optimism once again that stability was here... Then the EIA inventories data hit. With crude (Crude inventory rose 5.39mm barrels against expectations of a 1.75mm barrels and a 3.062mm barrel draw last month) and distillate inventories (+2925K, Exp. 2100K, Last 11205K) surging considerably more than expected (some expecting a draw), futures prices are fading back rapidly...
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Good for another 400 points on the DOW.
OK, Which one of you isn't driving to Wal Mart three times a day ?
just finished picking up "back pack" supplies there ........nobody in the place.......guess the end of the month "card refill" isn't helping today
and China is building strategic oil reserves, which won't go on forever.
The only issue I have with the headline or the news is that nothing should be a surprise anymore. Just need to be lucky enough to be on the right side of the next manipulation if you want to eek out any returns in this market.
But it is interesting that China imported a LOT MOAR of both iron ore and oil in December -- perhaps they will stimulate their own steel companies to build MOAR oil storage to hold it all!
Do you know the 3 most priced resources in a war?
Oil, steel and...
Watch grain closely as we close up to the summer ;)
If they won't buy it you can't sell it. I wonder if this'll make the Saudi's happy......
"At 387.8 million barrels, U.S. crude oil inventories are at the highest level for this time of year in at least the last 80 years."
Rigzone's "career" site is a place to go to see whos hiring and where around the globe in the Petro Industry...Just an FYI for furthur data and maybe a heads up on things...
I said this months ago, and nothing so far has persuaded me away from my initial thoughts........
The end of the petrodollar, USD as sole reserve currency, and the QE Ponzi scheme and charade we have been living under for the last 40 years, will end soon and the mechanism that the world will use to do it..........
Drowned us in our own fucking oil!!!!! (priceless)
I may have been wrong about one thing, I thought the bottom would level out for oil in the mid 30's and stay there a very long time, but it looks like the world wants to fucking break us down USSR style, and it might go to the fucking low 20's now!!! The Saudis are adding rigs and increasing oil production as the price drops!! And the Russians are bunkering up and willing to deal with a "Stalingrad" situation for a year or two, if it means the collapse of the USD, it's military, and stranglehold on energy trading!!
But keep "dreaming" on my fellow Americans, all is well, your exceptional and entitled to the world for free, and no one can touch our power and wealth, dream on, the Super Bowl is right around the corner!!!
Ever thought about the fact that it could be a strategic buildup?
China is stocking up, the US is stocking up... ehe... and tensions are pretty damn scary...
There’s a lot of strange shit happening...
And there’s a mayor stop in building, maintenance and repairs in the petro sector. It’s not just a money thing to restart all that, it’s a lot of planning and engineering and that takes a shitload of time.
Very slippery...
Smart people are buying and holding this...everything is on sale.
.
As I've encountered countless "Is this the bottom for oil?" headlines over the past month, I've been reminded of the equity crash that took place throughout 2008. Every day, another equity plunge, every day more "Is this the bottom for equities?" headlines.
Bottoms always have to be called, but never tops. Funny, that.
The bottom is always in when the MSM headlines read "This is the end of [insert asset name here]", unless of course it pertains to gold/silver.
crude is earning its name; very rude to speculators...f*** u, dirty black sticky no good abiotic stuff that won't go away.
Who exactly was it unexpected for.
The existing rigs will pump until dry.
agree... where's that favorite word I keep hearing all the time when things turn out exactly as expected... oh yeah, "unprecedented"
Kevin Henry's hand attempts to catch falling knife .... hehehe
... Rig(or) Mortis ...
Truth or Consequences...
Demand destruction and overcapacity don't go well together. Time to fire up those printers and catch the knife beofre it falls grandmama.
Tried that in the Depression Doc.
Oil BARELY made it to a buck a barrel.
$20 before $200? Likely....
The destruction will be crazy....someone wants to buy distressed oil assets on the cheep cheep....
Bingo. Someone does and someone will.
Interestingly....
More businesses dying than starting. Oddly, yet there is ALWAYS a positive birth adjustment in the BLS numbers.
http://www.breitbart.com/big-government/2015/01/14/economic-death-spiral-more-american-businesses-dying-than-starting/
It's really simple. People can't afford to buy anything and it costs too much to produce anything of real value thanks to Wall Street commodity speculators, so you can't make any money doing any real business.
The only business left is fraud. And boy does Wall Street love fraud.
How much oil does the world consume on a daily basis again?
Depending on whom you ask 80 to 100 MBPD. But i think your question was rhetorical...
Sustainability is a real bitch. If you have calories to burn, you can actually do and build shit, period. those calories have to come from somewhere and they have to be replaced. I don't know why people have such a problem with this simply concept or the concept of flux. Moreover a huge amount of calories need to be spent everyday in order to simply maintain the status quo. Not to mention all the energy that must be used to keep all the biological cycles going (most coming from the sun/photons). Well, at least to maintain life in it's present form. So far the dinosaurs had a much better run...
We consume ZERO oil. That is how much oil HUMANS consume.....
Think again... http://www.homeopathyworks.com/product.php?xProd=8702
LOL
See! This is exactly what happens when people choose green energy! Now we have too much unused oil. The Koch brothers tried to warn us but no one listened. Dam those "liberals."
my call since i've been here (labor dayish) has been US recession start no later than Q1 2015
"Looking good, Billy Ray"
Feeling good louis!
Buy!
this is out of date already
Already on the bounce for....another big dip.
Too many shares of stock never stopped anyone from buying them. Oil is reloading on the VLCCs again.
http://gcaptain.com/oil-traders-seen-storing-25-million-barrels-crude-se...
The surplus is being purchased and stored for future use. BTW, what do you suppose happens to shipping rates when tankers get used to store oil? They go up and the dumpers get even less for their oil so eventually, they will come to their senses and realize just how stupid and limited they really are.
Huh. Do oil tanker rates calculate into the Baltic Dry Index in any way? It's shot up the last 2 days.
Carnage re: retail sales
ZH didn't do it justice ... just went over the numbers ... december drop -0.9% (HUGE miss)
BUT
would have worse since november revised lower ... if no revision to november ... december -1.4% ... as it stands november revised from +0.7% to +0.4%
BUT
guess what? ... october revised lower as well ... if october had not been revised lower november gain would only have been +0.2%
With all the info manipulation going on in this and all other segments of the market, I am surprised the numbers were not massaged to the downside. After all, what is a slight downward revision in the grand sheme of things???
They probably were, but you can only do so much without being obvious.
Why would the market be surprised by a build as producers haven't cut, so I would bet refiners would buy as much as they can hand over fist at these prices.
Fat finger? http://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=pet&s=a103600001&f=m
so what you're saying is crude is still higher than the start of the day?
Break already!! Completely!
Break already!! Completely!
Prices are going over the cliff.
OIL will find some temporary support in the very near future. Longer-term, however, it has much further to decline...
http://www.globaldeflationnews.com/oil-light-sweet-crudeelliott-wave-upd...
What we need is a war so the military can use up that oil! Preferably in the middle east but we'll go to Ukraine if necessary. And don't worry the cost. The war will be cheaper because oil prices are down.
Gas prices jumped $.16 here yesterday. Everyone is playing the don't buy until the last minute since prices continue down. Some are getting caught as physical inventory is now declining. My bet is this is the last or close to the last downwards inventory report of the EIA. Expect serious cuts in bio diesel and ethanol subsidies coming further drying up supply and probably lowering corn prices.
This whole thing is mainly a bad mirage and the momentum is over doing the collateral damage. I agree with Rob Kirby this is the orchestrated black swan that justifies the next massive round of QE. The mis-information on the supply/demand issue both in the U.S. and abroad has been orchestrated to create the crisis. Effing Saudi Arabia doesn't have the vaunted extra capacity. They are struggling to keep production flat. That and the ISIS situation have them playing ball. My guess with both the U.S. and CHina as they try and decide which side will be the eventual winner here. Enjoy the cheap gas while you can depletion continues and the other side of this fabrication will be hell..... Yes I think demand will remain punk for quite awhile but supply declines will be nasty.
Isn't it awesome how gas prices haven't even come close to matching the decline in crude and they are still playing the oil went up today so the price at the pump goes up game.
http://www.cmegroup.com/trading/energy/refined-products/rbob-gasoline.html
Dec contracts are looking very tempting.
Looks roughly in scale here
I find this amazing. Sounds about right, just like GDP 80% of the reported number is completely fake.
"Indeed, the numbers are striking. Contrary to the oft-cited 26 million businesses in America figure, Clifton says 20 million of these so-called “businesses” are merely companies on paper with zero workers, profits, customers, or sales. In reality, America has just 6 million businesses with one or more employers–3.8 million of which have four or fewer employees. In total, these 6 million U.S. companies provide jobs for more than 100 million people in America.
Of the 2.2 million job-creating companies with five or more workers, the numbers break down accordingly:
HFT case:
http://business.financialpost.com/2015/01/14/canadian-charged-by-u-s-in-...
Just think it used to be gas station against gas station that had gas wars. It has become much larger now I remember Obozo saying they were going to put the Saudis back on camels and now it has turned around. I just hope it is out of control now.
This is almost entirely a supply sde issue with little to do with demand, which has been stable...in fact the chinese are increasing their purchases at these low prices to fill up their strategic reserves.
New tech in shale oil creating a supply glut and low prices which is good for everybody except the oil barons and sheiks.
Not a demand issue? Why are copper and iron tanking then?
What horse puckey. And the Fed has 4,500 tonnes of gold too.
pffft.
The ONLY reason oil will go up is that CRAMER is bearish on oil and oil stocks! If Gartner joins in then we will see a huge spike in oil prices!
1.7mm barrels? How the heck do they even fit oil in there?
Oil is actually climbing today. I see $40 as a bottom. It's enough to really shake out the high cost producers.
Oil is down hard. Gold is soon to follow. Look for under $900/oz by summer. Cost of mining just took a huge dive.