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WTI Nears $47 Handle After Inventory Build Doubles Expectations & Production Hits Record High
With inventories expected to rise 2.33 million barrels, crude oil inventories surged by 4.87 million barrels for the 5th week in a row (despite some talking heads looking for a draw). There were significant builds across the board in all products. As far as rig counts dropping means production cuts - forget it - crude production rose 0.534% to a new record high and total inventories rose to a new record high. Furthermore, as the following chart shows, the total crude inventory is still massively excessive relative to historical norms for this (or any other) time of year.
5th week in a row of inventory build
to a new record high crude inventory...
Crude inventory remains massively high both seasonally and non-seasonally...
and as far as rig count drops meaning production cuts... not so much. Crude production just hit a new record high...
Charts: Bloomberg
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I'm sure Habib is on that ladder right now as we speak lowering the price of gas the same way he was on it raising the price of gas 10 minutes after oil rose $5.00 a barrel last week. Right? Rigggght?
Distillate inventories drew 3.252mbd.
"I'm sure Habib is on that ladder right now..."
No Shit! The price of oil effortlessly sank like a r-ock in Yellens *&%!; yet the price at the pump stubbornly held it's ground.
Oil goes up $5 in price, pump price instantly shoots up 25 cents...
Fucking bastards.
Local Cincinnati area gas prices went up 21 cents this morning. Why? Because they could. All thousand stations, all at once. No collusion around here, no sir.
I noticed that some stations here in central Ky are doing the same thing today, what a scam.
The gas-less recovery...
Looks to me like the world still runs on oil...
even more so in the U.S.S.A.
http://www.eia.gov/tools/faqs/faq.cfm?id=33&t=6
Not after last night's tex-mex and beer fest it's not
Silly Wall Street. This is going to take many many months to play out.
Funny, I saw several new Escalades and Excursions today on my way to work. I think some people don't have the gift of foresight. Well, I hope they have fun living in the moment.
Miffed
El Vaq, I dunno, this tub of lard could explode any day now. Have you noticed there is a problem under every rock these days?
Ahh yes, Greece could nuke the EU banking system which could create a contagion that could spread around the world quickly. But the idea that dropping rig count is going to instantly drop the supply of oil is a misnomer. That is what, in the event that there is no black swan that crushes everything, will take many months to play out. Existing wells are going to continue to produce unless the people who maintain the wells and ship the oil cannot be paid, and without a complete collapse of the economy, somebody will be willing to pay.
Every day you don't use your AK is a good day.
Miffed;-)
"I gotta say it was a good day."
Amen to that, miffed, but I prefer my AR, it is a bit more, shall I say, refined!
Actually, that is what I have as well but I was trying for some assonance in my post. ;-).
My daughter was freaked out never having shot a gun before. We dragged her down to the back yard to learn to shoot with it. After six boxes of ammo gone I called a stop. " oh Mom do we have too? I didn't know guns could be so fun!"
Miffed;-)
"We Over-pumped Some Folks"
Looks like over-pumped tits.
So we believe the oil/gas numbers, but not every other economic statistic trotted out for the masses.
Got it.
"oil/gas numbers" are easy to verify...just look at the pump..everyone but the consumers want the price of oil as high as possible...that it's falling lends credibility to the numbers.
Good to see more driving less, the fat bastards could use the exercise.
Gas Wars? Geez if I had a couple o bucks I'd fill up my gas light.
Here kitty, kitty, kitty - come out and play
I've got lots of hopeum for you (and I promise it won't kill you this time - it better work since kitty has used up all of its nine lives by now)
I notice the inventory build is plummeting each week. Won't be long before it falls.
I think the refinery strikes have a wee bit to do with it, but that is for the price of gasoline, etc...
You sure the oil inventory is down? Did you also take into consideration the number of tankers off shore storing that sweet stuff?
Gimme some of that sweet stuff...baby!
Plus rig count is Friday....
This is a race to see how quickly we fill up storage (contango you know) vs when inventories start to drop.
My guess is that if the saudis want to sink our bismark when inventories start to level off, they try to increase production, but who knows.
The rate of growth may be slowing as the SPR is approaching capacity, or supply and demand are reaching equilibrium.
More nonsense saying production is rising despite falling rig count that totally ignores the time lag between a well being drilled and production from new wells coming online. A piece on crude inventories that does not give even lip service to refinery utilization rates or product inventories is not a clear evaluation of the situation. A year from now Tyler will be showing a scary chart showing production falling off a cliff as investment and rig count declines with lagged associated falling production finally kicks in.
Too many melted down whales making it into the market... Its the only plausible expanation...
I wonder if the lifeblood will go to $20 and stay there a while? If it does, watch out below. I'd love it because I'd get more $$ to save, or should I say, buy more PM's and boats to have accidents in (I didn't just say that out loud did I)?
Double edged swords are dangerous!
Production will fall soon enough--lag time, my friends.
HAHAHA!
Just keep buying stocks. As soon as Greece is sorted out -> Dow 20000!!!
O/T look at the Nikkei CFD's , and the idiotic rampfest in usd/jpy. It's almost time to short that trade again.
Nikkei 225 17,956.00 17,652.68 17,971.00 17,621.00 +(303.32 +1.72%)16:01:24
Gas tax cut can't wait to spend that extra $15.
I am sure that there are numerous taxing 'authorities' that will remedy the situation.
Seems pretty obvious now that the rigs that went off line were the ones that weren't producing much - which makes some sense. The smaller companies have less access to sustaining capital. Wildcatters are the first to drop when oil drops too, but that barely moves the production needle.
Somewhere someone is screaming at their banker to "fucking get control of that commodity before they lose it all" I love it.
Introducing the Hummer 4. GM says its a humdinger!
Watch for the short squeeze now. 51.50 coming fast.
Price goes where there are the most stops to be harvested to the up and the down side. Nothing else matters anymore. And this is the price determining mechanism of the invisible hand in virtually every market, especially gold, silver, and black gold.
Watch the crude market long enough and soon one realizes that 90% of intraday movements are nothing more than a money grab.
The shale guys could short oil, buy the fizz and pump it back in the ground using cheap credit. That would keep the jobs, make money, increase barrels in the ground for future production, and decrease inventory, all fuelled by ever cheaper credit. What could possibly go wrong?
/sarc (? - not sure... hehehe)