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Crude Pumps (And Dumps) After DOE Show Biggest Inventory Draw In 8 Months
Confirming last night's API inventory data, DOE just reported a 3.882 million barrel drawdown in total crude inventories (considerably more than the 1.5mm bbbl draw expected). This is the biggest draw since early September. The initial spike took WTI Crude prices above $62.50 but that is fading now...
Biggest draw since September...
Oil pumped and dumped...
But still well up from last night's API print...
Charts:Bloomberg
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Wake me up when it hits 40/bbl. Otherwise the beatings will continue at the gas pump.
But, but, but, what about the $20 a barrel oil!!?
It's here. A barrel is no longer 42 gallons, it's one beer ball of oil now. Pump tap is built right into it, or you could just derail it and smoke a whole town in North Dakota.
Well Cushing is full isn't it? Didn't the charts show us that it would be full before the end of April? It must be full.....
Yep, good thing the refiners aren't building inventory for summer driving season.
Pumped and dumped??? More like setup for 63.50!
That is the positive mindset we all need :)
you might note there was 6 million barrel increase in overall product or compare against 2014 may.... At this rate we will be exporting net oil by december. It is just a HFT trading pinata
well, when net imports drop 2MB/day, of course there will be a draw. if same as last week, oil stocks would be up over 10MB this week, hitting 500MB total. party on, wayne.
Imports dropped 905kbbl/day and that is the key, the dumping of cheap oil seems to have taken a break. Most of the big increases in storage were due to massive increases in imports. Viewed conversely, most of the drop in oil prices was due to dumping, not a glut of supply. Gasoline storage only rose by 400k bbl this week. All the gasoline being produced is being sold. In fact, gasoline production over the last four weeks is up 3.9% over last year and yet gasoline inventories have dropped 3% in the last month. What does that tell you about gasoline demand?
Grandma Yellen says the price of oil is quite high.
For the last four or five months, investors (speculators????) have been buying up physical crude oil like mad, in order to keep it in storage for awhile....its the new "precious metal", the new money, the new world currency ... the extreme contango made it quite profitable, one could then sell the futures on the CME and book the profits immediately.
However, the contango situation on the CME has flattened enormously since then. The trade is no longer "easy money", and in fact when one consideres the risk of Federal Reserve rate hikes, it might even lose money.
So they stopped buying. They stopped importing so much oil to put in storage. And right at the same time, the fracked wells began to deplete.... nowhere to go from here but down, eh?
I'll buy that.
Wrong, try again after really having a look at the numbers.
Is Cushing full yet? When will oil be $20?
Oil in the $30s? It may happen as a ‘short squeeze’ ends
6 May 2015, by Howard Gold (MarketWatch)
http://www.marketwatch.com/story/oil-in-the-30s-it-may-happen-as-a-short-squeeze-ends-2015-05-06
Crude has soared 40% from its low this year, but weaker demand and high production might lead to another leg down
What weaker demand? Gasoline production is up 3.9% over the last four weeks from a year ago and gasoline inventories have fallen 3% in the same time. That says to me that the refineries operating above 90% can't keep pace with demand for the product. Ergo, demand is exceeding supply.
OFF TOPIC TYLERS, no articles on the Alberta elections where the 44 year stranglehold by the Consevatives, now with a Socialist (NDP) majority government?
They are against pipelines, will raise the opil royalty, increase taxes and , horrors (actuasll the one good policy) let Albertans refine the oil in the province (more, better jobs, in an already fucked environment)which will screw the Cushing and Buffet (railroad) crowd insteaf sending it to Texas or China..
Where is the headline!!!!!!!!!!!!!!!!!!!1
Holy Shit! That's like Texas voting in the green party! You know the end is near, when the commis start winning in places like Alberta. Wow, just wow.
Should be as good for Texans as it is for Albertans.
Duh!!! Buy $40 oil in February, and store it in Cushing. Cushing inventories go up.
Sell your $40 oil in May for $60, Cushing inventores go down.
What idiots (besides oil analysts) would want to buy $62 oil and store it, when they are already sitting on a sh*tload of $40 oil?