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Oil Rises After API Reports First Inventory Draw In 16 Weeks
For the first time since the first week of January, API reports a 1.5 million barrel inventory draw (against last week's 4.2mm build). This also comes with a 336k draw from Cushing following on from last week's 162k draw. Oil prices have responded by pushing higher, though it appears most of this was priced in.
If DOE confirms this draw, then this will be the first draw since the first week of Jan...
Which appears to have been largely priced in today...
Charts: Bloomberg
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Isnt this due to that summer/winter gas crap?
I see your draw and raise you 10%.
That totally went through my mind too. Isn't this when the refineries have to draw in tons of fuel in order to meet a zillion different blend requests across the country in which the EPA requires. That's what usually makes gas at the pump go up in price just in time for everyone's vacation driving season.
Then I thought about doesn't the gov make more money as the price of fuel goes up in an exponential sort of way as the price goes up? That the tax on the penny made at $2.00 going to $2.01 less than the taxes made on a penny going from $3.00 to $3.01?
U know when u look at that draw in the context of refinery build to meet EPA zillion different blends requests.... And look at the build in inventory... that draw is meniscal. UGLY!
But with all inventory builds to meet a positive GDP in Q1 we are well below neg 2% GDP for Q2 already and it's just started... And it's already gotten worse.. And markets have hardly corrects besides Russell can't be fooled so easily....
Is Cushing full yet? When does oil get to $20?
never
Na it was one of Buffett's oil train derailments they were sandbagging...
Mystery draw.
Is oil $110 yet? Is Cushing empty yet?
" DRAW " is code for movement to moar obscure storage warehousing .
65 by cannon fodder day then it fizzles for awhile. Happy stinko de mayo.
All in on shale oil companies that were losing money hand over fist with WTI at $110.
Now with WTI at $60 I'm sure they'll make so much money they will sell dividends
Hahahaha, of course it went down.
It was never full to begin with.
there’s a difference between what kind of oil really exists and the amount of that is traded on the Ice.
The oilprice fluctuation is just a derivative chock that will soon adjust itself arround 72$
Let's see - if I stashed $45 oil in Cushing a couple months ago, and I can sell it today for $60 -- what should I do? Of course -- the answer is to buy more $60 and stuff it into Cushing?? NOT!!!
gas prices have shot up already... we were contemplating a family driving season but in light of higher gas prices, we are contemplating that no more
sure glad, I ddn't buy a new truck!
Oil up and the dollar is down.
The Petrodollar is in trouble.
Im proud you reported this Tyler..your showing alittle objectivity which is great......i did warn you the cushing lies would be proven false and they have.....media hysteria to drive prices lower to prop econ is back firing on lies.
The egg n your take will look like spoog.!
Inventory is going down because the recovery is heating up. This is not that difficult, folks.
Supply & demand has been long dead you dummies. Nice rationalizations
I generally laugh off the fracking doom and gloom on ZH; but I don't laugh off the obvious fact that low oil prices are causing pain in every oil field. I live in the patch, and am just seeing the beginning of a slow down in the endless oil trains heading south. Housing is still strong.
I was hoping for a longer low price drought, as here in Western Canada (Saskatchewan) oil patch wages are obscene ... there needs to be a purge and a return to efficiency. There is enormous room for efficiency gains, starting with a good 30% or more cut in wages.
What many don't realize, is that the industry has enormous room for efficiency gains simply by cutting wages becauses wages are the single biggest driver of costs ... and wages in Western Canada have stretched beyond all reasonable reality to the jobs actually being done.
My hope is that we see a good long period of supressed prices; it'll force the industry to get back down to earth. (and give some of us sale prices to buy revenue properties at).
Unlike many of the doomers though, I'm willing to bet that North American industry can be some of the most efficient on earth, and it will surprise the hell out of people at how low a price it can be in the black ... and still offer very good wages.
Bet you a milkshake that you will be wrong. But we'll all see if marginal revenue one day is greater than marginal cost in most of US/Canada oil extraction.
Doanno where that graph came from as API data did not ramp up prices. They were ramping up from 4 AM. EIA tomorrow is more important than API number.
WRT Cushing filling up - that was BS and I posted here a while back to the Tylers that it was BS and would NOT happen.
Someone decided to ramp up oil even more at 11:30 PM. Sigh - so much for my USO short.
One of the greatest short covering rallies in history. The Fundamentals SUCK for oil and this run up is BS. China economy is tanking and US is in the doldrums. Worldwide Demand is still shy of Supply by ~ 1 + Million barrels per day.
US Production reduction is skant - ~ 100,000 BpD. BFD.
http://finviz.com/futures_charts.ashx?t=CL&p=m5