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WTI Slumps As Cushing Inventory & Production Hit New Record High
Following last night's massive 10.5mm barrel build (according to API), this morning's DOE inventories data was highly anticipated (with an expectation of just over 5 million barrels). It did not disappoint... printing at 9.622 million barrel inventory build, this is now the fastest inventory build on record... with record total inventory and record Supplies at Cushing. Storage concerns are growing. But, despite the collapse in rig counts, high-grading and cash-flow deparation remains as crude production also hit a new record high.
The reaction...
10th weekly inventory build in a row... the biggest in 10 weeks ever...
and Production continues to rise...
For a sense of just how crazy this level of inventory is...
* * *
Just as an FYI of how crazy the market has become - when the following Bloomberg hedline hit at 1025ET
- *U.S. CRUDE INVENTORIES GAIN 1.2% IN BLOOMBERG USERS SURVEY
WTI exploded higher as the machines read it before realizing it was the expectation not the print...
Charts: Bloomberg
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Canadian debt needs a haircut.
Can't wait to find out which banks went long oil at $70.
Won't matter. Mr. Yellen will back them. Yellen is the mightiest matzo ball of all time! Of all time!
After looking at that second to last chart, can't wait until the global economy starts to recognize it is a dead man walking.
I don't think zombies have philosophical debates on their diet.......
Bullish.
$39 dollar oil by this time next week? Oh baby!
Maybe lower. Looking more like $36 at these inventory levels. That may bleed upwards as refineries finish spring cleaning cycle and can start to process the backlog. But still think we will see a 3-5mil build per week once everyone is back on line.
More like $36 or $37.
Wait a sec - I thought God said the absolute floor was $ 40.00.
Pentagram getting cheap oil for the war.
Bad news is priced in. Shorts trapped. USO increase in shares does not correlate to longs OIL ready for tempory rip Higher.
haha
your funeral
see you at "in the $30's"
Give us our warmonger juice!
Kill! Kill! Kill!
Enemies are everywhere!
Pray and Spray!
War with Russia takes a SHIT-TON of oil!!
you would think slumping demand / inventory build would lower production ... think again -
"Total products supplied over the last four-week period averaged 19.4 million barrels per day, up by 4.3% from the same period last year"
game theory territory here
No one will cut production unless they go bankrupt. Interest payments on junk debt is a bitch
That's because the shales have MASSIVE debt and are losing money right now but have to keep drilling at a loss just to service that debt. That is why they will go bankrupt.
Well I'm sure the Osage Sioux Nation won't mind if they [Cushing] just expands a little onto their land to improve capacity a little...
The practice works like a charm in Palestine.
Paulson/Bernanke/Gietner/Yellen- demand curve:
Low economic activity = low oil demand
Low oil demand = low employment
Low employment = low investment
Low investment & low employment = low economic activity
How do we get out of this circle jerk?
IREN: Print more paper!!!
If we are banking 1.5 MILLION BARRELS a day the real story here is NOT the increase in supply it is MASSIVE drop in demand as the U.S. Economy must be imploding at warp speed. Our newspaper this morning the Kansas rig count is now 50% of where it was in December with target of 25% by early April.......
Either the EIA has been lying for months about demand or the Shat is ripping towards the Fan....Still don't understand why imports remain so high and why Oboofoo isn't filling the SPR with cheap oil.... Our buddies in Canada are way beyond screwed. They are going to be smashing into the wall any week now.
Its getting ugly real fast now.
Been dropping since 2005.
shortage of storage?
no worries, pour it into the empty CA aquifers
Long self storage facilities in optimal locations in PADD1.
The Keynsian solution would be to ship it to SA and pump it into the ground.
Easy peasey.
>>>>>>>>>As of March 11, nationwide stocks were at 449 million barrels, by far the most ever.
http://www.bloomberg.com/news/articles/2015-03-12/oil-storage-squeeze-ma...
The only thing I can think of that is leading to this continued build...and prices still this high...especially for futures contracts way out. Is either investors are really stupid OR the administration ( and or congress) has quietly told oil companies they are going to open up the export spigot very wide.
...and 2 fighter jets just blew overhead, full burner and fully loaded headed out to sea (Atlantic)... If I vanish due to a bright flash you know what happened...
Hay…
I am a trucker I own my own rig and I use alot of diesel. I was thinking of putting some profits each month into an oil company with the logic that if oil spikes higher then at least I get some payoff and can weather the higher diesel prices a little easier.
I was thinking SASOL because it is listed in South Africa (where i live) But reading Zerohedge has put the fear into me... I am thinking the logic of the trade seems ok but the banks might just close the doors anyway.
First Question. Is this a stupid idea? Should i stick to boating accidents?
Second question... Who do I trust with the money? Is there any banker type that can be trusted?
Any guidance or sage like advice will be greatly appreciated
Toby
Oil crashing. Refined products barely move.
On the issue of storage. Anyone know how much capacity is left in the strategic reserve??
Hurry up with the QE4 already...
OK....someone please 'splain. How is it that with 'rig counts' falling as dramatically as they are.....oil production is simultaneously spiking?! Are the remaining rigs being cranked to 'Ludicrous-Speed' production settings or what?
seems to me the rig counts are a rather spurious reference marker.....
Ace think that leads to a fair number of conspiracy theroys that could have some relavancy. To me this glut is a combination of world wide contraction due to terrible demand and some production increases. The party line from gubmints is tons of new supply. That doesn't seem to align with reality. That some rigs are really getting juiced to produce is a possiblity but to me at best would offset only part of the dramatic drop in the rig count. The depletion in the shale oil fields is over 50% in year 1. Check out this article claiming that the Bakken wil drop by 600,000 BPD by the end of June that is pretty significant IMO and once again lends more credence to the declining (maybe massively) DEMAND vs the increasing SUPPLY. The whole punish the Russians also has cred in my book especially since Oboofoo has admitted as much. So how much fabrication of the glut is also a factor IMO again its significant on the supply numbers. It does seem that the crash in prices is overdone and now killing the economies of our Shale producers and Canada. So another miscalculation. The financial reprecussions of this are still largely hidden but scary as hell. Could be the big BLACK Swan we will see....
It seems pretty apparent to me that TPTB will always spin the extra supply story versus a huge demand drop due to the Happy Horseshit Economy story. The IEA (Europe's version of our EIA) has still kept demand numbers very high thru December that has to be B.S. given the world economies. China has also got to be using less due to the dramatic drop in exports. Look at the Baltic Dry numbers to support that. We are in or heading into a Depression that appears to be huge (IMO) If we don't get some very effective stimulus. No more just bankrolling the banksters if they want economies to grow or stop shrinking.
http://srsroccoreport.com/shale-oil-production-will-fall-600000-barrels-per-day-by-june/shale-oil-production-will-fall-600000-barrels-per-day-by-june/
Damn, its hard to raise rates when you have to print moar to cover collapsing commodity prices. Thank Gawd the recession is over!!! Sheeeittttt
And 4 week average of imports UP year over year!
http://ir.eia.gov/wpsr/wpsrsummary.pdf
Imported oil is cheaper to produce, but it is not being sold cheaper to the USA, is it?
SCIENTISTS WARN THAT EVEN IF TIME STOPS, CRUDE PRICES WILL KEEP FALLING
Analysts desperate to find reasons for crude´s decline miss the obvious: there´s an oil glut.
Source: www.financialpaparazzi.com
The facts seem to suggest demand destruction.