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WTI Back Below $50 After Inventory Build Takes Crude Stocks To Highest In 80 Years
Following yesterdsy's API data, DOE has confirmed a 2.5 million barrel build in crude inventory - the highest stocks of crude at this time of year in at least 80 years. This was accompanied by a very small drop in production and has squeezed WTI back below $50 (although there was an algo flash-smash up to $50.50 right after the data).
Crude inventories rose by the most in 3 months...
US EIA: REPEATS CRUDE STOCKS HIGHEST IN AT LEAST 80 YRS, RTRS
Which we assume means for this time of year...
Dragging Crude lower (despite a flash smash)
Algos are turmoiling...
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Perfect pic Tyler. I was saying the same thing. Throw on Vwap and you will see algo's smashed it back down once it hit that deviation. Now, it can not stay above Vwap.......yet?
Wait a minute... EIGHTY YEARS you say??
Impossible!
There was only a fraction of the oil storage capacity we have today in 1935!
enter stage left....crudeprice.com to tell how this is all in the plan for higher prices
I have no doubt that the carpetbaggers on Wall St. have some sort of scheme in the works to parlay this into $120/bbl oil.
Mainstreet cannot afford $120/bbl. Wall Street needs mainstreet to survive, else there are not enough people to fleece.
Crude price seems to make little difference. Gas prices around where I live are almost as much as when it was $100 a barrel. Crude could be $1 and I bet you would still pay more than $3 a gallon in California.
Prices where I am in Kalifornicate are almost $4.00 a gallon. The reason claimed is that the giant Exxon refinery is down from a fire and The State is making it difficult for them to reopen. That would be like the twisted psychopathic socialists running the government here. Steeped in some environmental regulations and extortion, cause the gas price to rise at least a buck above market. The blame the oil companies while the utterly dumbed down population continues to vote them in, too stoopid to realize it's The State creating a massive regressive tax on the middle and working classes via the gas price.
@ thamnosma: Yep, I paid $3.89 yesterday at Costco, the lowest price in the area. The lines there were out into the parking lot, the higher it goes, the longer the line gets! Most stations in the area are well over $4.00 already. We're getting absolutely raped at the pump and Moonbeam is loving it - the higher the price goes, the more tax money for his Train To Nowhere. I want to move out of this socailist hell-hole but I'm trapped with a house to sell and then - where to go from here? What state is going to be any better? They're all going to the CA model of socialism rapidly.
TRUMP 2016!!
I think its a matter of % utilization of storage capacity that is at a 80 year high. So total capacity wouldn't matter.
OK. Fair enough.
Would be good to see ZH put up that chart
But none the less, it's very ominous to see the year "1935" depth of the Great Depression as our current benchmark.
Me thinks the headline would have greater impact saying "since 1935" and at least some mention of "since Lehman"
Recovery summer is going well and the best is yet to come. I can hardly wait for the rout in the energy sector bonds that will undoubtedly push the stock market higher.......
We use super tankers for floating storage now, in 1935 they used warships.
I answered your question with a nonsensical answer, does that mean I win the arguement?
Yes you win!
But try not decompressing so fast next time.
Now we closed above VWAP. Is it time for a serious ramp today? Running stops? Ping Pong?
But the guys at Oil Price.com said there would be a draw this month and the price would rebound.
http://oilprice.com/Energy/Oil-Prices/Forget-Media-Hype-Oil-Set-To-Rebou...
Hahahahahahahahahahahahahaha
OilPrice is one of my contrary indicators, particularly with trading/investing ... with the caveat that sometimes they have sane content, but those usually don't give you stock tickers and shit like that.
Regards,
Cooter
It matters not. I shall go to my retailer and pay the same 3.09 I've been paying for weeks. Price fixing mf'ers and now a combined 70 cents a gal in tax. Anyone know how many gallons are in a barrel of oil?
42 gallons of crude in a barrel. How much gasoline is going to be dependant on the quality of the crude, but a simple google search will get you some averages. They'll probably be on sweet light crude though.
42 gallon in a barrel which on average yields 12 gallons of diesel and 19 gallons of gasoline.
Yeah, were getting fucked.
Listened to a smart dude talk about this, and he explained that during the time period of inventory draws, a lot of oil, particularly Canadian oil, was not making it to market due to a number of factors (forest fires, maintenance shutdowns, etc). Well all that supply just came back online and guess where it's going?
His prediction: $40 oil coming right up.
wait just a minute Gregor, crudeprice.com never said anything about a backlog of Canadian oil just waiting to hit the market.........sarc.
LOL!!!!!!
Reminds me of people talking about fox or cnn news
The data is inconsistent. The chart shoiwng the change shows too much of a drawdown for one big increas to lead to such a high jump in inventories.
Edit: The highest stocks for this time of year makes a lot more sense.
Holy Cow Gold and Silver are getting so low they'll be able to use them for coins again.
Oil is pointing toward $500 gold.
The stackers (me included) didnt like your post but there is truth in that statement. Therefore, you get a greenie.
The crude to gold ratio says either crude is too low or gold is overpriced.
All on the back of imports. Read the report.
U.S. crude oil imports averaged over 7.9 million barrels per day last week, up by 587,000 barrels per day from the previous week. Over the last four weeks, crude oil imports averaged over 7.5 million barrels per day, 2.5% above the same four-week period last year
Now you get Iran.
So long Canada, we hardly knew ye.
"Take off, hoser!"
Global population increasing by 84 million consumers a year..1 billion every 13 years..It's like adding 2 California's to the consumption base,every year.No matter how the media spins it,we're going to have serious shortages in oil,water,and food,dead ahead..Party on,mother fuckers,the shit-storm is dead ahead..
Eventually we will. This is what happens when morons sell real assets for legal tender backed by a canon printer.
"All those other bitchezz are printing!!!"
Legendary status
Something to consider...with the pullback in consumer spending here in the developed world, there will be less demand for many commodities.
That may free up supplies for the growing non-developed world. Rather than export all their stuff to us, they might have to put it to domestic use instead.
There's no shortage of 'stuff' in the world. It's the DISTRIBUTION mechanisms that are all fucked up, due mainly to our wonderful form of global capitalism.
Also keep in mind that most people in the world do NOT feel the overwhelming need to spend, spend, SPEND! 99.9 percent of the world can live quite well on a fraction of what we here in the West go through on a daily basis, and not feel shorted. And if WE could get over ourselves, we'd see that WE can downsize quite a bit without sacrificing real quality of life.
It's our HABITS that are unsustainable in the long term.
Bemused, I agree that we waste a lot of stuff. Then I think of guys like Bessemer, Ford, Edison, Bell and Jobs, who made a lot of stuff that other people want. Should we take their stuff? Sort this through for me. If everyone shared equally would there be enough I Phones for every person on the planet? If we find there not, should we destroy those I Phones owned by the lucky few because the majority to not have one? If we pumped out the great lakes to water the south west would there be enough water? If we divided all the stuff into seven billion equal piles of equal stuff, could that be done; would there be enough stuff?
Never forget that the dividing and distribution of all that stuff is going to take an incredible amount of time, effort and energy. And then, when we get it done we will discover that some people have already lost the stuff we gave them and are now in need of more stuff. But, where do we get it? Do we go back to the people who still have their stuff that we gave them and demand more from them? Will the cycle of redistribution ever end? Will we ever achieve fairness?
What will be the natural reaction of people once they realize the cycle of redistribution never stops? What will they do once they realize that the needy multiply at an exponential rate? What would you do?
You'll never have 100% fairness, but that doesn't mean you adopt a total hands-off policy and let the chips fall where they may.
Our distribution methods are all geared towards maximizing profits now, regardless of any longer term problems that may result. But you can't properly plan for the future that way, and there are times that things should be done in a way that results in lower profits today in favor of a better result tomorrow. The problem is our economy is being run by the kind of people who lack ANY discipline in that area. They are like the guy who breaks into the food stash you put away for the future, eats it ALL, then tells you, "But I was hungry NOW!".
Great...now we ALL starve tomorrow asshole...
We need adult thinking in finance. We need people with the maturity to forego an immediate reward for themselves in order to ensure a more secure future for everyone. What we have now is two-year olds throwing tantrums because they want ALL the toys for themselves, right NOW!
Think about this...We scold our children when they act in this way. We tell them they MUST share with others, and do NOT reward them when they successfully take another kids toys. Then that same kid overhears a convo where adults who do the same thing are praised for being good businessmen, and that businessman's victims are called stupid or lazy for complaining.
Now look at our kids today and tell me they don't learn much these days...oh yes they DO! Wait till you get old, and need some help yourself. Then you'll see how well they've learned...They'll throw your ass in a home and never look back.
Housing "soaring", economy "booming", stocks flying high and commodities at major lows. You know, the stuff you need to supply all those booming sectors. How does this make any sense?