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Production Cut Sparks Crude Rally As Inventory Rise Reaches Longest Streak On Record
Following last night's pump'n'dump after API inventories exceeded expectations (5.2mm vs 4.2mm exp.), WTI crude prices have dropped to almost a $46 handle and recovered as chatter of "no deal" from Switzerland picks up. DOE reports a 4.766mm barrel build, greater than expected, for the 12th week in a row - the longest streak since records began in 1982. Crude prices are however surging as production dropped wekk-over-week for only the 2nd time this year...
Inventories hit a new record high and are up 12 weeks in a row - a 33 year record high...
But crude production fell WoW for only the 2nd time this year...
The end result.. a rally for now...
Charts: Bloomberg
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crude production drops. US "only" adds 5M barrels to an already bloated inventory and cushing adds 2.6MB. the headline writers sure know how to get the robots to buy crap that will be down 25% in the next month.
Inventory increases in Cushing have averaged 2.4M bls/wk for the past 4 weeks, so it’s still on track to reach the “all-full” level by the end of this month. That’s when things start to get interesting...
no, that's when the refinery drawdowns start, and people will get to catch a brief glimpse of something called reality outside their one-dimensional meme-driven world.
"storage space only ever go up, not down... yes, of course"
I don't disagree with what you're saying, but the weekly inventory chart above shows that in past years the inventory drawdowns don't appear to begin until mid-May. So Cushing is still on track to reach capacity in about 4 weeks. So do you think that will have an effect on the spot price, or not?
People are starting to realize that abiotic oil is a renewable resource.
Assumed a production cut was in the works.
I am just not going to drive for a while. Ride the fixie everywhere. They cut supply we cut demand by more!!!!
Time to go long /CL
https://www.youtube.com/watch?v=Tta1K_is0ag
"the longest streak since records began in 1982."
otherwise known as "longest since Lehman ... and then some"
I just took the biggest dump since Lehman.
Production in 2014 was the highest in 100yrs. http://www.eia.gov/todayinenergy/detail.cfm?id=20572
That's production *growth*
Still a ways to go to hit a production max.
OT
I didn't know Barry was moving to FL?
http://www.orlandosentinel.com/business/brinkmann-on-business/os-worlds-...
They are next to UCF because it has the second largest student enrollment in the nation. Nothing like access to massive population of drunk horny kids.
Tyler your a smart guy u cant figure out the media destortion here? In next 2 weeks 700,000 bbd will be added to refinery capacity as we go off peak maintenance......now production is already flat to down u think stocks are still an issue? You can see the destortion of reality here still? Yeh Cushing will fill up my arse
Tyler your a smart guy u cant figure out the media destortion here? In next 2 weeks 700,000 bbd will be added to refinery capacity as we go off peak maintenance......now production is already flat to down u think stocks are still an issue? You can see the destortion of reality here still? Yeh Cushing will fill up my arse
Photo: Oil platform fire blazes off the Gulf of Mexico - @carlitosahm
https://twitter.com/carlitosahm/status/583281504488329217/photo/1
This will help curb production.
Worlds main energy commodity now swinging daily like some penny stawk MOMO day trade....crazy.
The Fed is now long oil - who cares that consumption (never mind production) is in the tank.
Deflation is too strong for Yellen.
Since the Fed is a market maker in many markets, we can expect "stupids" like this to continue.
In North Dakota all prayers are no doubt going out for war in the Middle East, for attacks on tankers, pipelines and refineries. They would well pray for Israel to take out Iran, and for Iranian missiles to rain down of Saudi oil fields. In an instant the drillers and transport business will boom like never before out there. This is just fact. The hundreds of thousands of high paying oil patch and relatd jobs would boom the economy again, housing will go up, all kinds of service businesses open or reopen. In this case, War is Good For Business". The down side is that Russia will also be open for business, and their oil is cheap oil, bigger profit margin that fracking oil, which sits on the cusp of profit at $80 dollar a barrel.
Imports still coming:
http://ir.eia.gov/wpsr/wpsrsummary.pdf
7.3 milion barrels PER DAY--about the same YOY.