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WTI Plunges To $42 Handle On Massive API Inventory Build
For what appears to be the 10th week in a row, API reports a massive 10.5 million barrels (far bigger than the 3.1 million barrel expectation) and a 3 million barrel build at Cushing. If this holds for DOE data tomorrow (and worryingly API has tended to underestimate the build in recent weeks) it will be the biggest weekly build since 2001. WTI has plunged on this news hitting $42.60 on the April contract.
If API data is accurate (and it has tended to underestimate the inventory build in recent weeks) then this will be the biggest build since 2001...
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The House of Pain
Just like gold. Remember, oil is the black gold.
Reminds me how they crushed silver
The new independents have not gone bankrupt quick enough, but when they do the big producers will buy all production and means for pennies. So much for the the new wildcat boom.....it will be back to business as usual.
This is bulshit I live in Romania and I don't see this in the gas price, this cheapening is on paper only!
Gas prices are now 1.8x more than in 2009 when the barrel was around $40 and 1.7x more than they was in 2007 when the barrel was $140
Why stockpile oil? War is coming.
Ding ding ding we have a winner.
Waiting for oil to be free - will that be next week? Or the week after?
Why is premium gasoline now at such a premium to regular - more than 50 cents a gallon. It used to be only 20 cents in the past.
Those who feel they must have the best for their Escalade or BMW can likely pay for it.
Same with diesel, the spice must flow and the trucking companies will pay to move it; and those folks that have a $65,000 jacked up diesel 4 X 4 "compensator" to drive around town and blow smoke can afford it as well.
That might be true, but I can imagine lots of F350 dually diesel repos happening in the Bakken region.
Really?
There is no money right now.
There is no NEED for these vehicles anymore.
Now the true meaning of "negative yield" is becoming self evident.
DEFAULT AND BANKRUPTCY.
Probably not F350s, all of those already have a mechanic lean against them.
The repos are mainly GM & Dodge duallys.
Probably not F350s, all of those already have a mechanic lean against them.
The repos are mainly GM & Dodge duallys.
I never understood why somebody who never does any major towing would spend $65k on one. Somebody ripped out a perfectly good house down the road from me and built a McMansion (If SHTF, I'm going to be tempted to dynomite the motherfucker,) and he had the jacked up powerstroke and the custom choppers and all of those toys. Then his wife left him, and it took a long time to sell the POS McMansion to pay for the divorce. Then I see people going up and down my street with Cummins and Powerstrokes who actually do have big ass trailers hooked to the things, and none of them are jacked up. They're stock. Besides, my '92 POS will go more places than a jacked up Powerstroke. They're too long and have too wide of a turning radius to be worth a damn when it comes to anything except hauling ass when it comes to offroading.
Aye to you and Cunny Funt.
In the Inter-mountain West the wannabees driving the compensators outnumber the real people 3 to 1 at least.
Can't count the number of those I see; $20,000 in rims, lift kits, and customizations to get more power and blow more smoke but do zero work. What a waste, never understood it either.
Read an article last Summer about the workers in the shale states customizing their diesel trucks to blow more smoke - and it lowered the mileage by 25% - just so they could get in front of someone and leave a cloud of diesel smoke in their face. What a bunch of dumb monkeys!
Our entire Government is dependent on those "compensators" moving.
Instead an entire fleet of absolutely nothing has been built!
(And now the war to "engage" this vapor ware in has been created too. Interesting "simulation" is it not? Too bad it is REAL though.
Now MILLIONS may die instead of "merely hundreds of thousands."
Perhaps the time has indeed come for humankind to meet its maker.....
Then you get the people who don't know how to drive them. I ran into one who actually took his up into the mountains. Brand new 6.7l Powerstroke with 850+ ft-lbs of torque. It was snowing and he couldn't get back out the way he came in large part because his idea of how to drive in the snow was to put all of that torque down to the ground, then he got turned around and we had to tell him how to get out of there. The dude was straight up lost, and oh man, was his wife pissed off at him. Being lost at 10,000 feet in a snow storm is apparently a way to piss a woman off something fierce.
Then last year on my deer hunt, I was on a rickety little road where another guy had his, and it was snowing again. He couldn't make a turn on a hill because he didn't know how to drive, and that long truck kept on sliding towards a tree. (Momentum and finesse would have gotten the truck around the turn.) I had to wait for somebody else to hook up to him to keep him from slding. Then he went down another road that was a dead end, had to turn around and crunched the shit out of his tail lights. The truck was only a few months old. Nice way to break in a $60k truck! Yet, when I crunch my rocker panels, I don't sweat it. I just take a hammer to the door frame if it crunches it bad enough to interfere with the door closing.
I drive a 2002 F250 diesel powerstroke crew cab 4x4, but only because I got a hell of a deal. It drives like a school bus and is actually difficult to park due to the big turning radius and poor visibility with the camper. It was not my first pick, but it only had 12k miles when I bought about a year ago (it as it was a crew truck in a camp for a remote location only accessible by boat/plane). I paid what the bank said its book value was and had to put maybe 3k into repairs/tires/etc.
Runs like a champ and will be paid off in about a year. I plan to get another 20 years out of it. :-)
Regards,
Cooter
Yeah, but we're talking about the guys who spend $65k for a mall crawler. rolling on 37"s with 20" rims and an 8" lift. I know plenty of people who have powerstrokes who use them, and I know plenty who got smoking deals on used ones.
I was just confirming your comment regarding the difficulty driving them. I am not a CDL (and don't want one) and I am a decent driver, but I have found I have to think different when I drive. I avoid a lot of situations now just because I know I will get in, but won't be able to get out. Some of this is the size, but some is the camper as well. I am flat out blind backing up and judging space, even in good lighting/conditions is very difficult. That said, I have paralell parked it before and I was way fucking proud of myself, LOL. I cheated and got out twice to manually gauge distance to avoid an accident though, but fuck it, I did it!
Regards,
Cooter
International built a good motor in that 7.3, it's a shame Ford FUBARD their whole brand of trucks with the 6.0L
People still won't buy their newer models because of the 6.0L legacy.
Boat anchors, LOL.
From what I heard, the EPA had something to do with that and they had to come out with the 6.0l a couple of years earlier than they planned. I don't know if that is true, but it wouldn't surprise me. I do know that International and Ford came to hate each other because of the 6.0, and the new 6.7 is made by Ford now.
Yeah, a guy at work said the same. Something about EPA changes and they were forced out of the engine design. He also commented the replacement engine sucked.
Regards,
Cooter
This
your's the 7.3? I've got an 02 2wheel drive Lariat.....327,000+ mi. Easily tows smaller tractors up and down 395.
Yup. I got nothing to tow though, I am too cheap to buy a boat. I hike and trout fish. Sucks at 14mpg, but if I get 250k out of it I will have more than made it up in new/semi-new car BS.
I fucking hate dealerships at this point and actively scout for older cars/trucks when I don't need them. I need to get this one paid off, but at that point, I am shopping for a spare. When I have three good beaters, I am happy. If one dies, I got time to find a new spare.
Regards,
Cooter
Compensators outnumber the real people because of 72 & 84 month loans.
Why worry about future debts when you can have your pick of any gal in the trailer park!
"..customizing their diesel trucks to blow more smoke"
What.. People actually *pay* money to get a vehicle to blow smoke?
Bloody ell in most parts of the world it's still considered an utter embarrassment because it means the rings are going or there's some other mechanical issues that the owner can't afford to fix. On top of that all the person behind you would be thinking is "Get ya fucken car fixed ya tosser" so one actually feels BAD driving one.
That some meat head would pay to have this done is bad enough on its own but being prepared to pay 25% extra in Fuel? What on earth is going through these peoples heads?
Republicanism.
Here in corn central IA the price in my locale for 87 octane "super" unleaded with the KORN laden ethanol containing water worthless SHIT is 30 cents less than good old 87 without ethanol.
I heard something funny the other day from a local station owner.....seems around here the locals use just as much at 30 cents a gallon more. Folks are catching onto the bullshit that is ethanol even here in one of the most religiously corn and beef regions of the WORLD. You get better mileage and it's much better for your engine/fuel system.
FUCK ETHANOL
"FUCK ETHANOL"
+1000! Growing corn for ethanol to put in cars is one of the dumbest things ever, unless you consider that the mandates requiring ethanol in fuel are nothing more than a backdoor subsidy for farmers. You don't get anymore energy out of the corn than you put into growing it, so it is at best, a total wash when it comes to energy independence, and in reality, it probably sucks up more energy than it produces.
25%+ plus more energy, from some studies.
Corporate welfare at its finest.
Ms Bachman, she'll tell ya so.
you ask stan grossman, he'll tell ya the same thing.
Distilled corn is for drinking. Not detroying the gaskets in your engine...
Ethanol is banned as aviation fuel because it is corrosive. It will actually eat your engine from the inside out and you can't pull a plane over to the side of the road when it breaks down. Those flex fuel vehicles have to have special materials to withstand the corrosion.
Avoid fuels with any ethanol.
Regards,
Cooter
It should have been banned in the marine industry too, but there were many a bloke that ruined a perfectly good powerhead running that crap before folks caught on it was absolute crap in a marine powerplant setting. Suddenly the marine lobby started raising holy hell when there was talk about a mandate to run the E15.
One of my favorite things to do is when I pull up to one of the local full service stations for my work truck, and always get asked if I want the 87 with 10% corn. I always tell them "fuck no, corn is for feeding cattle not burning in my engine, and it makes a piss poor feedstock at that"
How do you avoid it when it's mandated? I don't own a refinery.
The mandates are for volume. Some refineries blend, some do not. So there are both supplies aviailable at the pump, but you have to do your homework.
Gas pumps are marked with stickers that state the ethanol blend ratios. Look closer next time and see. It might say "up to 10% Ethanol" or something like that. Some stations will sell much higher blend rations, so you really ahve to watch for that. You can also talk to station owners if you aren't sure.
Under 10% is most common and is better than above 10%, but if you can avoid it entirely it is best.
Regards,
Cooter
Exactly, you have to watch your stickers next to the octane rating. Here in corn heaven there is a cute little sticker next to the 87 with 10% ethanol that says shit like "cleaner air for Iowa" which is a complete farce. I can see one plant three miles west as I stand at the pump with the stacks that smoke 24/7. I don't know that the emissions are that bad, have not done my homework on that one but I do know it's a constant reminder of all the corn that gets trucked into that plant every day, and all the dry distillers that gets trucked out to the farms where it's fed to the steers as a pretty much worthless by product.
Corn fed my ass. Give me grass fed any day over that shit
You're right of course, but you missed the most important thing - the human factor. Burning a food as fuel for a vehicle instead of burning it as fuel after being eaten for the human body is fucked up... people out there are starving fer cryin out loud but "ohhhh no's the envireyment" when all it's really about it paper pushers pushing paper money profits.
Actually I think it was briliant if not mean spearited as keeping oil high by restricting production.
Attaching food price to the price of oil.
Keep oil high we will burn the food in our tank.
My mileage went up 10% three years ago when I ditched the ethanol. That's nearly 50 extra miles per fill up.
Alcohol has less energy per unit volume than gasoline. You should get better fuel milage with straight gasoline. On top of that, if you have 100% pure ethanol, and you open the bottle, it will absorb moisture from the atmosphere until it is about 190 proof, so any practical delivery system for ethanol is going to have water in it.
Absolutely. We have some reagents that are prepared with 99% ETOH and are only good for the day. The rest of the opened bottle is used to dilute to 70% etoh which we use for cleaning. Very expensive to get and if you don't have a pharmaceutical license, you need to get it at Arizona.
Miffed
That is why diesel usually gets better mileage as well; ~10% more energy per volume IIRC.
Regards,
Cooter
The price will only go up when the maximum amount of damage has been done to the oil rig's in America , that s what it is all about destroying American bissines.
Because corporations are greedy.
Period.
Bunch of loads were held up due to the derails and fires. Now the flow continues as more must be pumped to make up the difference in lower prices. A system that is self perpetuating in highly leveraged shale.
yep - keep pumping 3-4x the amount of oil we need. that will really help add to the oil bulls case. that along with a strong dollar, we'll be back to $100, umm, i mean a 20-handle in no-time.
One swinging pendulum of many to come
Remember how it like rallied 20% last month from the January lows on some rig count decline?
Manipulation is the name of the game.
It had more to do with stupid "investors" imo.
Good, anything to crush this "recovery" lie.
LOW OIL PRICE MAY LEAD TO FRENCH FRIES BEING COOKED IN BRENT
Soy, corn and canola oils are all more expensive than Brent right now, poor families seasoning salads with gasoline. Homeless gourmets flock to petrol stations.
Source: www.financialpaparazzi.com
Like the site. Bookmarked it. Thank you and thank you ZH for allowing linkage for us little guys.
and just 5 years ago many experts were saying that we have reached peak oil and we'd be running out of fossil fuels by 2040-2050.
Now, all the sudden, we have too much oil and we will never run out of it.
I like the new narrative a lot more ;)
If that's the current narrative, it's incorrect. BTW, we won't be producing much oil globally (20M barrels per day) by 2040-50. Look at marginal costs v. marginal revenue; it's Econ 101.
Fixed ideas are funny.
Global production is still limping along and will certainly roll over if this price action sticks around. Given the natural decline rate of fields and the timelines for investing in new production, this may very well prove to be the top in global oil production on longer time lines.
You are refering instead to the collapse in demand.
Regards,
Cooter
Back in 1920 they said we would run out of oil in 20 years. Then in the 1970's we were about to run out of oil again. Get the drift?
The fuse on those $22tn is oil dervatives is getting shorter, and shorter.
Tick tock.
When do people start asking if these massive inventory builds at lower prices are the result of weak demand and a weak economy?
Never?
When the music stops and they are beat over the head by said weak economy.
"But but but! Nobody could have seen it coming!"
Q1 earnings will be the 2 X 4 that gets everyones attention.
I cant wait for the sudden announcement.... 'Uh we are out of storage space'.
Last check left me thinking that we have enough space to store oil until Memorial Day. If builds continue after that, this shit could get hilarious.
On the subject of oil-related ETFs, check out the BEATING these two ETFs have taken over the past year:
http://finance.yahoo.com/q;_ylt=Aute4mGu0rGj4DxwQwssnpDkNbkF;_ylu=X3oDMT...
http://finance.yahoo.com/q;_ylt=AkILzJ1.yhUjybtFL0NYWADkNbkF;_ylu=X3oDMT...
Both ETFs appeared to hit their 52-week intraday lows at some point today.
Here's a riddle: how come imports year over year of crude oil are not much changed when inventories are skyrocketing? Why import crude oil if so much domestic production is being put in inventory? Existing contracts?
So... US oil production... is lower than oil consumption...
America still imports oil...
and still... builup continues....
so why do they more oil and import that much to store it?
It’s just weird...
and why is storage in Europe still at a normal level?
You need a lot of oil for a war,especially WWIII.
When that storage is full, then .......
The real Winston Churchill did not fight World War II the way World War I.
And of course that saved Britain from absolute certain destruction.
If your money is where your head is you would now be utterly destroyed too.
This war is not being fought nor has it ever been with guns, bombs or oil.
Nor steel nor coal apparently.
Appears to be being fought with abstractions such as "debt" and "monies"... The ether and " computers."
Mr Jones' "infowars" are REAL.
You may want to brush up on your history if you think infowars are a new thing.
Much like spying, they've been around since the very first real war whenever, or wherever that
may have been.Only the tech is different this time, not the practices.
I've read up a ton on Churchill - not sure why you want to take on that persona to be honest. He was colorfully great with the 'pithy' comments - but IMHO a fuker in real life. Just saying he is not a clear cut case of the right stuff if you don't want the NWO. That being said - state your case otherwise please
Because Saudi oil can be imported cheaper than we can frack our own. And...there are a couple of fracking outfits so heavily indebted that they can not stop fracking or they go, adios.
A very eloquent man in a turban just told this other guy, who just told us yesterday, we can ignore all of this erroneous pricing information.
That's not "information" but NUMBERS.
Microbes, nanobots...these war mongers better find an off ramp here quick.
Clearly no one person's life is worth a billion dollars...
Obviously, since the price at the pump has remained largely unaffected.
I've got a '84 Land Rover Diesel. Beats those gashogs any day in the field.
Every time oil drops ~ 1% in a day, there's instantly an headline talking about the "plunge"
When gold drops ~ 4% in a single day, there's conspicuous silence & crickets chirping.
That's because nuts, idiots and morons own gold, so it's not of much interest to the general population.
Vlad's been sobbing uncontrollably watching oil's slide.
Let's watch him closely while he's in this fragile state. If he wants to judo flip you or whatever, just do it.
So long farewell Canada.
https://www.youtube.com/watch?v=Qy9_lfjQopU
So what has caused futures to bounce back over $44.50 this evening?
You might be looking at the May contract price for WTI.
The April contract price for WTI is trading around $42.5 as of this post:
http://www.cmegroup.com/trading/energy/crude-oil/light-sweet-crude.html
Thanks!
This Forbes article does a decent job of itemizing job losses from the oil and gas sector. As an FYI, it estimates approximately 40 jobs (on average) are lost for each drilling rig that is idled.
http://www.forbes.com/sites/christopherhelman/2015/03/16/oil-layoffs-ite...