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Crude Surges After Surprise Inventory Draw, Biggest Production Decline Since 2013
Total US crude production slumped over 1.5% last week - the biggest decline since October 2013.
Add to that a considerable inventory draw of over 4.2mm barrels (against expectations of a build)...
and crude prices are surging.
Charts: Bloomberg
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Maybe crude price inflation will force old Yeller's hand in September /s
Crude 1 year chart:
http://finviz.com/futures_charts.ashx?p=d1&t=QA
A "surge". Alert the press....
Looks real surgey on this chart:
http://finviz.com/futures_charts.ashx?t=QA&p=h1
Good site, thank you sir.
Small changes for one week. The production drop is interesting and would be meaningful if maintained over a quarter. The storage drop against a 460+ million barrel reserve is a blip. This is going to be meaningless when the bill comes due, but shaving a few pennies profit today is more important than the giant butt fucking this fall......
Imports were still 7.5mmbbl/day so this is a significant draw and may give some clues as to what producers are doing when prices drop. All of the shale wells operate with what is called a variable choke and that means that the operators can dial back production when prices get too low. This is exactly what my operators have done in the really bad months of March and January. Production was cut by 35% in each of those months. When prices ramped back up in April and May, production did as well. I would suggest this is just showing that the US oil producers aren't as stupid as the Saudis and the gold miners are.
There will be deflation...No, there will be inflation.....deflation....inflation....DEFLATION! INFLATION! AAAAACCCCKKKK!!!!!!!!!
Of course - put out any figures that support your cause. Not surprised here.
Scientists tell us that oil is fossil-based. That''s a lie. Oil is plentiful everywhere, like water. It's a by-product of earth's core heat. Beware of scientist's lies , the many other lies they're wont to tell us.
https://biblicisminstitute.wordpress.com/2014/07/17/puzzled-scientists/
I don’t know if oil is fossilized or abiotic. What is observable is that every known oil well tends to have a production curve. What I have not observed is old fields coming back on line as a result of reservoirs refilling.
>What I have not observed is old fields coming back on line as a result of reservoirs refilling.
Could happen though. Your observational window is extremely short.
Oil is not plentiful everywhere, like water. Even fresh water itself will not be plentiful enough in the future at the rate we are depleting groundwater. If you are against "scientific theories" why would you choose to believe the most unlikely and ridiculous thoery of all, that oil is abiotic and able to be replenished?
Where is crude "surging"? WTI down by $.38 and Brent is down by $.34.
Click "refresh" on your browser tab.
Yay! Higher gas prices! Sucks for me, but it's good for the eCONomy I hear.
higher gas prices and higher medical costs - GDP #winning
They will drop lower and possibly all the gains today erased by close. US economy can not take high oil prices again. It is just a shakeout.
I think it's still going to less then $40:
Texas oil production to break records despite price slumphttp://www.bizjournals.com/houston/blog/drilling-down/2015/07/texas-oil-...
I don't know if it will plunge to $20 like Shiller predicts but it's definitely going lower...much lower. Sadly, areas like Houston will see more massive job cuts in this field I bet.
A few oil majors can cut back on production. The rest of them are loaded with debt and have no choice. The same goes for OPEC
Gasoline stocks way down too. Big, big driving season. I think the whole country is on vacation.
I always love how a million barrels here 5 million barrels there move oil prices when the US uses 19-20 million a day. That's 6 hours worth of oil (4.2 million) that moves the market.
It's all phoney, can't believe any statistics or charts or facts.
OK. Great. Now it makes sense. The motor oil I paid $1.79 a quart for when crude was $85.00, then $4.29 a quart when crude was $54.00 a barrel, is going to cost how much now?
Gas will cost $5/gal, insurance $10,000/yr, food at $300/wk, houses $300,000 but we will all somehow be able to pay for it all on $50,000/yr wages.
Will wages spike or assets and commodities crash? It's simply a matter of math. People cannot spend money when they don't have the money or credit to spend. Only governments can do that.
Houses at $300,000? I'll take four of them for the price of one out here.
But I agree with the basic premise. I have no idea how people can afford to live today. My nieces and nephews are just starting out and even with decent salaries, they're scrimping to makes ends meet. My wife and I comment that it's a good thing we're getting older because we wouldn't want to be just starting out now.
sun tzu: "Will wages spike or assets and commodities crash"
Answer: No, Yes, Yes and then no.
Only suprise is to ZH as we been saying this is coming all year...they on other hand once again too the mainstream media view for whatever reason and still refuse to investigate eitehr the EIA & IEA data rigging...Trillon Dollar Swindle
Interestingly, Cushing remains at just over 80% capacity. This time last year, Cushing was at 25% capacity...
So what do you think that means?