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Crude Prices Bounce On Inventory Draw Despite Biggest Production Spike In 19 Months
Following last night's surprise inventory build (as reported by API), as one trader noted, "inventory declines are expected this time of yr and more or less expected, we need to see inventory draws accelerating," and DOE didn't disappoint reporting a 2.8 million barrel draw (against expectations of a 2 million barrel draw). Inventories remains massively high though and Crude Production soared 3.28% - the biggest rise since Oct 2013. Crude prices initially ripped on the inventory news but are fading.
4th week in a row of inventory draws
For some context as to what this inventory change means...
But production exploded by the most in 19 months... Lower 48 States increased production at an average of 209,000 barrels per day
Crude prices ramped into the data after legging down all morning... spiked on the news but perhaps the machines have not seen the production data yet.
Charts: Bloomberg
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Imports were down. Anytime they are below 7.1mmbbl/day, expect a draw.
The prols will go bat shit If gas goes back over $3 a gallon national average,
So keep this shit you greedy fucks..
$3.69 avg in LA, $3.78 avg in SF.. loving the specific California blend. On my way to work, there is an Exxon and a Chevron straddling I5 that always have the same prices - $4.59/gal for REGULAR (+20c for premimum). Insane gross profit margin.
"The Alaska Price." That's what you get for being an oil producer...
We're drawing down...now, but how long will that last? The refiners have made a guess on summer driving and we'll see how good their guess was by late June. Inventory of crude is very high and the draw down isn't that great. Somebody is going to be wrong...
They spilled 0.8 of that number out on the ground.
The dollar must be declining.
The algos are going to fry from all the illogical inputs and expected outputs.
Crude oil now trading more erratically than a MOMO camera on a stick IPO, lol.
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Domestic production of 9.57 million bbl per day is a new record…but that’s…unpossible!
Inconceivable.....
Amtrak has a train wreck and airplane ticket prices soar the next day.
Nope...no inflation here...
Nor in Europe none neither!
maybe it's time for another meaningless "rig count" post.
(snort!)
Again EIA are estimates and not actual production so jsut like GDP that Tylers seems to question who knows if 3% rise is real.....unreal double standard by ZH...question what it sees if no objectivity
Again EIA are estimates and not actual production so jsut like GDP that Tylers seems to question who knows if 3% rise is real.....unreal double standard by ZH...question what it sees if no objectivity
Zackly,....
State Level production figures, i.e. Texas RRC and ND suggest otherwise...
The production rise (if actual) shows Econ 101 is wrong; producers will extract even when marginal cost is greater than marginal revenue.