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Cushing Storage Around 90% Full As Inventories Surge Most In 14 Years, Crude Plunges
Following last night's huge 12.2 mm barrel inventory rise estimate from API, DOE has just confirmed last week saw an almost all-time high 10.95 million barrel inventory build. This is the higest since March 2001. With today's 1.232 million barrel addition at Cushing, Goldman estimates only about 10% of storage capacity is left. And to complete the trifecta, crude oil production ticked back up again after last week's hope-strewn reduction.
- U.S. CRUDE OIL STOCKS LARGEST WEEKLY BUILD SINCE MARCH 2001 - EIA
- U.S. GULF COAST CRUDE STOCKS LARGEST WEEKLY BUILD SINCE JULY 2010 - EIA
Biggest weekly build in 14 years... 13th week in a row of builds - a record
Hitting another all-time record high inventory...
With Cushing rising notably - pushing storage levels to around 90%
Weighing on crude...
Retracing most of yesterday's idiocy...
Charts: Bloomberg
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Peak Storage.
If one was an insider and one knew Obama was going to pull the trigger on Iran, one might be very well positioned to make a lot of money.
A huge storage build like this, given the current geopolitical environment in MENA, makes me a bit nervous.
Regards,
Cooter
so, same as it ever was then?
Yes, but in this case the smash-and-grab would involve kicking up a fat war in MENA and disruption production (SA/IQ) or the shipping lanes to rocket prices of that inventory up by insane amounts over night.
I don't doubt they would do it for a buck, but frankly I would prefer to avoid a global war at that point in time. If US inventories were normal going in, it wouldn't be so attractive an option, but they about have this thing stuffed to the gills.
Regards,
Cooter
Most In 14 Years
Not since Lehman.........before Lehman.
That giant sucking sound you're hearing is $100/bl derivatives contracts cratering.
The problem we have is Obozo is a butt kisser and a coward who thinks he walks on water. He's going to back us into a shooting situation. It's one thing to be prepared to jump into a war but the military readiness is in the toilet as far as maintenence and training cycles. But not to worry, we're spending buttloads of money on shiny, expensive toys that barely works and rules of engagement that scream "kill me now". The train wreck should be epic.
earl is going to see $30 way long before it sees $60 again. Deamdn is zilch. The three people left in the middle class private sector cant buy enough O&G to make up for the millions of MC peeples lost.
I used to think ZH readers were smart. You don't really think Obama has any say in anything, do you? Idiot.
Only the members of the republican old fart faction of zerohedge known as 'the butthurts' believe that.
As if you ever served.
The train wreck at the end of 8 years of Bush Republicanism certainly was how you say epic.
Oil insane prices sure is lucky we have all this in storage.
Topping off the fuel tank before full tilt WW3.
Cushing is the new STEALTH class SPR!
Regards,
Cooter
In this topsy-tervy world where down is up and wrong is right, the only way to take care of this glut is to raise prices at the pump! Get ready for it!
What stands out as obvious to me is that this was all clearly broadcast to insiders 48hrs ago so crude could be ramped and subsequently taken back down again.
Let there be no muppet left standing!
I'm making over $7k a month working part time. I kept hearing other people tell me how much money they can make online so I decided to look into it. Well, it was all true and has totally changed my life. This is what I do... www.globe-report.com
Big ultra rehypotheticated suckers are trying to lure small suckers to dump on the rehypotheticated oil
As I said, this is a matter of weeks, not months, in my view.
The whole thing will be allowed to crater by central command
Oil to $35 where it should stay for a long time (inflation adjusted)
Iraq and Iran are both either online or coming online. Iran has several million gallons of crude in storage which couldn't be sold under the embargo.
Question is will a stable price of oil end the manipulation in other asset classes as well?
The lifting of Iran sanctions is the Big Play for oil shorts.
http://www.forbes.com/sites/chipregister1/2015/04/08/oil-traders-increasingly-struggle-to-bet-on-higher-prices/
In the spring of 2008, one oil expert said crude oil should be $65 a barrel, not the near $140 a barrel it was. In the summer, oil prices plunged, dropping down to about $38. Companies like Goldman Sachs that had bought tons of oil future contracts at ICE to drive up the barrel price to $140 were about to lose billions. Good thing the Federal Reserve bailed out most of these Wall Street insiders.
If not for the Federal Reserve, some of these these heavyweight oil traders could have ended up like Amaranth Advisors in 2006, which imploded after losing $6.6 billion on a bad bet that natural gas prices had nowhere to go but up.
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aRJS57CQQbeE
If we knew what we were doing, we wouldn't be doing this. We promote the guilty and shoot the innocent then wonder why things aren't working like they are theoretically supposed to.
Not me. I feel like a patron at the zoo. Watching 73 months worth of insanity and listening to Obama supporters taking credit for the biggest fraud and manipulation of markets in the 240 year history of America.
I keep thinking it's a nightmare and that sanity will return soon and yet each day- I wake to the sounds of Sonny and Cher singing "I got you babe."
I keep thinking it's a nightmare and that sanity will return soon
+10
I'm trying to get a grip on the concept that it is MY thinking that is off balance and that I jut haven't hit the update button yet.... but every time I look outside I see something different than what's on TV. And it can be very scary.... like sheeple who have been royally fucked in the ass blindly supporting the criminal elite like Soros-Clinton-Obama. The word insane comes to mind.
I can calculate the motion of heavenly bodies, but not the madness of people.
Isaac Newton
8 years of Bush republicanism ended so well.
perhaps, but there might be some changes forthcoming as far as how all that oil is priced in the future.
Think about the massive Keynesian bonfire you could have with that oil.
Sounds... cushy?
Inventory build would have been zero if the USA only imported 42.3 milion barrels during the week instead of 53.2 million (7.6 M per day).
We have achieved energy independence - but still put our troops in harms way in the Middle East!
So that's why gas prices in the midwest jumped 20%.
Peter Schiff says oil is going to $200.
And yet it will still stay around 1/20 of an oz of gold. Hmmmmm. Love those FRNs.
It will go to $35 and stay there
Looks like it will be topped off just as the european open season kicks in.
True that the demand pick up that comes with spring/summer should kick in any time now, this could still go a lot of different ways. A weak summer could leave a much higher starting inventory going into the lower demand fall/winter seasons.
Regards,
Cooter
In yesteryear American have made huge investments in staying home with 80 inch tee vees and pools and 10 movie channels
and 1000 streaming internet 500/500 fiber all caused by high prices we dont even drive to the mall let alone granny's.
It was a sea change driven by high gas prices and we settled into that routine were not changing now.
Sure there is still summer vacation but your job is on the line if you take it no one else is.
It just is not what it use to be.
This is your real employment report. No demand. For anything.
Still baffling as to how this made-up number (UP) squares with yesterday's made-up number showing a big drop in oil transport by rail (DOWN).
The devil is in the details. Imported oil was up 869,000 bbl/day to 8.2mmbbl/day which is the most in the last two years. That oil comes by ship. The excess imports of 869,000 barrels per day equates to about 6 million barrels of inventory build. The gulf coast inventory build was 8million barrels and that is where most of the ships unload. Pretty simple actually and nothing is made up.
last week - despite crude inventory build - prices rallied on drop in domestic production (per day) ... 9.422 million barrels to 9.386 million barrels
this week?
daily production ... 9.404 million barrels
rig count .... Come On Down!
Build more reserves complexes, that'll create jobs!
actually, Amerika needs a twin fiscal stimulus
add more asphalt to car dealers lots ... the dealer inventory getting a tad heavy
And in small letters at the bottom of the Cushing inventory chart is all you need to know - "supplied by Goldman Sachs"! Do ya trust 'em now?
Thank you! This is just a blatant Goldman lie, Cushing is reporting an actual number of 72%
Just so everyone can check the numbers for themselves:
Cushing inventory ending Mar 27(last week)
Cushing current operational storage(not total) is 76.3m bbl, last week it's only filled up to 58.94m bbl
Except they can't fill every tank to the brim. Some are reserved and others are used to transfer oil. With 76mmbl capacity they might be able to fit in 70mmbl
Does or does not crude oil have real value? The "market" should price oil accordingly...
that is all...
The bigger question is does gold have any real value? Why do people waste money and energy mining it at a loss?
The history of oil would tell us right it has sold more at 20.00 thanany other price so is that the real price.
Or is it the Pre Nixon embargo price 1.40?
This is such bullshit, Goldman is "speculating" 90% capacity, Cushing is reporting literally 72% fill with options to push down to Houston and New Orleans which aren't even at 50% and sizeable themselves. Quit feeding the Goldman agenda of pushing down to acquire cheap.
Zero loves GS, spouting their opinions as fact. It's been a sad story watching Zero slowly sell out to GS over time.
ha ha lol
The US imported 8.2mmbbl/day of oil last week an increase of 869,000 bbl/day over the prior week. That amounts to 6mm bbl of the 10mmbbl increase in storage. The biggest increase in storage was on the gulf coast which was 8mmbbl while Cushing barely increased at all, 1.3mmbbl. This month, the Cactus pipeline will start sending 250,000 bbl/day to CC that was going to Cushing. Not only will Permian producers get better prices, the tanks in Cushing will be getting 1.75mmbbl/week less full. This Cushing full hype is such nonsense. How come gold continues to go nowhwere? Too much supply?
Bingo. Good post. There's also a shift in how the big players in global trade want to price oil in the future.
Tick tock motherfuckers...
What about the multi-day stoppage of the 850k bpd Seaway pipeline (from Cushing to the Gulf Coast), which began April 3rd? That will likely inflate this week’s Cushing stocks. And even though oil can be sent from Cushing to the coast, there is a cost – around $2-4/bbl.
you might be inclined to think there is something going on on the demand side
Sounds good to me. I'm going on a road trip the end of the month for a couple of weeks and will love the cheaper gas. Peak Oil, bitches.
Sorry peak demand hit first. Lucky for your road trip.
Free gas coming to your town!
Come on $40 oil! I'm going all in when it hits that number! Actually, that's not quite true. Don't ever buy all at one time. Space it out. Maybe $5k this month, $5k the next month, $5k the month after that, etc. You won't nail the bottom exactly, but you won't completely fuck it up either.
Gasoline prices here jumped 30 cents a gallon overnight. It seems they have found new and lamer excuses to raise gasoline prices that have nothing to do with the price of oil.
Brilliant! Buy cheap oil, store it, blow up some ships in the gulf, oil price rises, turn around and sell your storage at a huge profit.
This is demand distintigration.
CAFE is reducing gas demand per car.
3.5 million hybrids are now on the road.
500,000 plug in EVs are on the road
The Millenials drive a heck of a lot less, because they
like cities not exurbs.
http://usa.streetsblog.org/2014/05/28/while-the-economy-grows-americans-...
so total fleet miles are down 1% or 10% per capita, and MPG is up 10%.
Crank the numbers overtime and i bet worldwide storage is bulging.
You could add hundreds of more demand destroying things but add to it Full throttle production and you get what we got here
Some men you just can't reach. So you get what we had here , which is the way he wants it. Well, he gets it. I don't like it any more than you.