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Crude Pumps & Dumps After Inventory Draw Slows & Production Rises
Following API's data lastnight, DOE reported a 2.19 million barrel draw (more than expected) this week, crude oil prices immediately extended gains. However, that ramp quickly faded once it set in that the draw was actually notably lower than last week's. For some context, this leaves the total inventory still a near record 30% above average for this time of year. Prices were also not helped as total crude production rose modestly WoW.
2nd weekly draw in a row but it's slowing...
Some context...
And production rose WoW...
Oil prices spiked then dumped on priduction news...
Charts: bloomberg
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Gap fill at 60.73. Pretty much where it just bounced. Likely, low volume melt up rest of the pit session. Oh well, enjoy the show.
My last pay check was $9500 working 12 hours a week online. My sisters friend has been averaging 15k for months now and she works about 20 hours a week. I can't believe how easy it was once I tried it out. This is what I do... www.jobs-review.com
Where are these massive bankruptcies i was promised?!
Yes, I know, you joined a Mormon-created MLM, where "the real money is in selling the business, not the products", and therefore getting in (i.e. Buying in at whatever level) really early.
Production is fluctuating currently but imports were up by 400kbbl/day but still less than 7mmbbl/day. As long as imports stay below 7mmbbl/day we will see storage dropping.
Cushing fell by 1mmbbl. Thought it was supposed to be full by now.......
Spring draw down and the refinery's can only pull so much at once and I get the feeling that Exxon etal aren't very confident of a big summer. Most of our imports go to east/west coast refiners since they have few local pipelines to draw from.
No, most of the imports go to the Gulf Coast and Cushing. The west coast gets most of it's oil from Alaska. Most of the refining capacity for the US is on the gulf coast and it's setup to handle the heavy crude that is imported. A lot of what goes to Cushing is coming from Canada and it's heavy sludge that gets mixed with LTO.
Only a small part of imports go to Cushing and that is mostly Canadian. The east coast mostly pulls from the Atlintic sources and west coast is mostly Persian gulf. Due to union and shipping laws, it's easier and cheaper to go overseas than to draw from Gulf of Mexico storage in American flagged bottoms...
Some West Coast refiners running only 50 percent ANS or even lower. In many cases 15-25 percent Bakken, 15 Percent Canadian, 20-40 Sours like Arab Light/Basra
The EIA says production is fluctuating; I think Bakken stats later this week (why not extrapolate to the USA?) will slow it's been falling for a while.
Edit: Maybe I am wrong. Bakken March 2015 production is about the same as January 2015. It only took 364 additional wells and barrels per day per well went from 125 to 120.
Nobody working, everyone staying at home, people buying all electric everything....yep, oil prices no where to go but higher.
Same for natural gas too as supplies inside USA collapse, dollar collapses, interest rates soar and "hot money" rules Wall Street as cash is King.
Yep, oil all the way!
Rah! Rah!
You do realize that the creation of those "electric everything" consumes more oil right? That there isn't a single renewable energy source in wide production that doesn't actually consume more petroleum product than it offsets? And while I agree nobody is working you can go look at gasoline consumption and see that J6P isn't sitting at home.
Actually, it consumes a lot of coal. While the shipments from the Powder River Basin are lower than, say, 2008, and the Obama Administration's War on Coal has had some success, especially in the Ohio River Valley and the old Midwest, the generating capacity from coal-fired plants could power a significant increase of Tesla's zap carts. As long as we don't export it all to China through Oregon and Seattle.
The Iraninan Red Crescent society sent an aid ship to Yemen's Red Sea port of Hodeida. That ship is being accompanied by the Iranian task force in the Gulf of Aden - a destroyer called the Alborz and a supply ship.
The U.N. is coordinating Yemeni relief efforts out of Djibouti and the U.S. insists the Iranian ship unload aid there for U.N. distribution (only to U.S./U.N. friendly Yemenis and al Qaeda, of course). Iran said STFU, we'll deliver it where we want.
This morning, the U.S. sent a couple of Navy P3's and the destroyer, the U.S.S. Winston Churchill, out towards the Iranian ships. The Iranians lit up the U.S. ships and plane with their targeting radar and warned them away. They apparently complied (or at least an all-out shooting war hasn't reportedly started).
The Iranians are bound and determined to get their cargo ship to a Yemeni port, and the U.S. does not want them to. Either the U.S. backs down and lets the ship deliver its cargo, or it starts a shooting war with Iran.
Israel is sitting on the sidelines licking it's chops - it can't wait for some unfortunate incident that will screw up the Iran nuclear talks and, better yet, start a war with Iran so they can begin the Persian genocide.
Oh yeah, there's that Straits of Hormuz thing the oil goes through that will become a little less Saudi Tanker-friendly if a shooting war starts. The Iranians seem ready to go this time if the U.S. tries to bully them.
we can only hope
As long as they don't buy their cruise missles from China again. Otherwise the Straits will be just as open as in Ronny's time. And it will be the Saudis who blast a US destroyer.
Iran has it's own mach 3 Khalij Fars anti-ship ballistic missile (AShBM). They pretty much own the Persian Gulf and Straits of Hormuz with that one as long as the radars and launchers are intact. They also have a 300 Km-range cruise missile - the Ghadir (aka Qadir). Not the most high-tech thing out there, but hard enough to defeat if they send twelve of them at once against a ship from tens of km away. They only need one to make it through.
U.S. strategy would be to take out as many as possible, but that's kind of the problem with Iran: 1) They expect that, 2) It's all mountains, and 3) like everything else, they'll produce tens of thousands of these things and hide them everywhere. The only way for the U.S. to own the Persian Gulf if they piss off Iran is to annihilate everyone the country. People have been trying that with limited success for the last 2500 years. It would be Viet Nam squared, and Israel would be more than willing to sacrifice as many U.S. soldiers as needed to conquer and pacify Iran.
Do yourself a favor and stop listening to the noise in oil every day and just buy some 2017 USO calls. Buying $30's right now. By Jan 2017 oil will be well over $100 and USO will be $40 again. Oil was above $100 because people wanted it there and oil crashed to $40 because certain people wanted it there. Whatever reason is was wanted to crash to $40, is over now and it's going to skyrocket right back over $100.
You're about as smart as the guy in your picture. Oil isn't going to $100 and you clearly have no concept of how USO works. By 2017 you'll need about $130 oil to see $40 USO. Clown..
wow, mad psycho who has lost everything in the market???? You'll see how i make easy money here dipshit while you conitinue to lose your ass and be mad at the world. Just look at your words man. Have you lost every penny in the market? Did your wife leave you for a nigger? Why so mad and angry??? lol
I. Did. Not. Pump & Dump. That. Ass (et).
“total crude production rose modestly WoW.” Is Tyler unaware this is an EIA guess based on estimates? This number has little credibility and is mostly a fantasy subject to significant revision. In the real world producers report production to state agencies once a month after the end of the reporting month. Because some producers do not file timely reports the actual number may not be available until several months after the fact, by which time it is stale number in a forward looking market. Ignore the EIA nonsense.