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Crude Tumbles As API Reports Another Huge Inventory Build
For the 4th week in a row, US Crude inventories rose according to API. With a larger than expected 7.1 million barrel build (3.5mm exp.), which follows DOE's reported 7.56 mm build last week, it is clear that stocks are piling up considerably faster than expected. The reaction was an immediate algo slam to the lows of the day...
4th weekly inventory build in a row...
The reaction was weakness, slamming WTI to the day's lows..
Charts: bloomberg
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The inventory builds will continue until WTI has a $20 handle.
That's my call also...$20-$22
They can store excess at my place. Call it Cushing 2.0 .
actually they don't even take it out of the ground...read that North Dakota...have ONE THOUSANDS WELLS...fracked and just sitting there wait for the price to go up...guess what happens when they are despresate for money. This whole economy is lie upon lie upon lie. The worst period in US history...the media will swear to any lie the Democrats or Wall Street make!
This post is by Gail Tverberg. Worth reading:
I was also mystified by Kurt Cobb’s statement,
What this implies is that limitations on future supplies may result from the price of oil being too low. Contrary to the public perception that such limits would be accompanied by high prices, it is precisely high prices that make it possible to exploit the marginal deposits that are unprofitable today.
Writer Gail Tverberg has developed this thesis in detail on her blog Our Finite World, a thesis first advanced by energy analyst and consultant Steven Kopits.
I clearly have been talking about low prices for a very long time. This is a link to an article talking about low prices from 2010. http://www.theoildrum.com/node/6226
Way back in early 2007, I was talking about oil limits leading to recession. In fact, I talk about oil limits leading to a collapse of the financial system. http://ourfiniteworld.com/2007/04/22/our-world-is-finite-is-this-a-problem/
Somehow, I am a “writer” and Steve Kopits is“energy analyst and consultant”.
http://ourfiniteworld.com/2015/10/14/our-electricity-problem-getting-the...
No post by Twatberg is worth reading.
Tisk, tisk. Impolite to denigrate another and shine no comparative light on your own brilliance.
Not True. Drilled Uncompleted = DUCs
You can hold onto critical cash by drilling, running a production string and not completing them. Say what you will about the producers who used cheap liquidity to acquire in place reserves to make future money for the business- but the real blame is on the legislative and executive house's lack of coherent energy (and fiscal) policies to benefit 99% americans with stable growth mark to market. American consumers will be paying 4 bucks for gas due to this planned market manipulation by the banksters (ziopetrobucks) in two years ,,,, the fix is in and that don't mean repaired, it means now bend over. Turn off your TV and any MSM. Do the research, the truth is therein. OR just take the blue suppository.
It's like -- October -- ya know -- people drive less from now until Thanksgiving...
Especially those without jobs.
I'm a buyer @ $2!
oh snap
i gotta be honest, with a 5.7 L hemi big SUV that sucks gas like yo momma me and my wallet get a tingle up our legs a la chrissy mathews with this news; never mind being long CVX, somehow that doesn't resonate as much
FUBO
Tanking up the wife's Jeep with the lift kit and big tires had gotten a lot easier on the wallet, too. Depending on how she drives it, she can almost get it down into single digit MPGs.
Why does my wife drive a jacked-up Jeep just to commute to work and haul kids to soccer? It's a Jeep thing. I don't understand.
Don't worry about the rig count.It's BS info which has nothing to do with production which is at record levels because of advanced technologies.The size of production coming into the market from Canada alone is incredible.Just look at Suncor,Syncrude and Imperial oil.There are way more and everybody is going all out.
http://www.imperialoil.ca/Canada-English/operations_sands_kearl_overview...
https://en.wikipedia.org/wiki/Kearl_Oil_Sands_Project
40 years for first phase.Saudi Arabia eat your heart out.
http://www.reuters.com/article/2015/10/13/north-dakota-oil-production-id...
I am going to love $1 Oil. The FED ZERO economy is just great!
Wow. With refinerves probably operating 10% under peak from the summer...it's really shocking that at the peak of Shoulder Season oil is building.
I mean someone should coin the phrase Shoulder season to describe the bi annual drops in refining that have happened since the middle of the century.
Sometimes zerohedge really gets in front of things....other times like this they'd be better served dropping the sensational and going with the boring explanation
Damn..I think it is time the government stepped in and resolved this issue..the oil industry is hurting..just like when GM was going down the tubes. OK..what to do..simple...Janet Yellin forks over $1 trillion dollars to the USA government...USA builds another Strategic Oil Reserve storage site. This creates jobs and gets this economy moving forward. When gas prices rises in the future...USA sells the oil reserves and pays back the loan. The FED can create a line entry on their accounting sheet in the asset category of 1$ trillion dollars so everything balances out.
Problem solved. Next problem, please. With the FED covering my back...well I feel good.
How do the experts keep getting surprised? Isn't this type of info gathering and modeling what they do for a living? Holy shit! Every fucking rig count or inventory report is a complete, total surprise. What bullshit.
If my reporting at work delivered at complete unexpected result every single fucking time i would be out of a fucking job! Or, would be working for the BLS, in which case i would probably get promoted.
Pathetic. Fucking pathetic. Even more sad is every tool of a fucking "news" organization runs it up the flag pole as soon as published......and are surprised by the results. Surprised i tell you!!
Corn juice becomes less attractive in an environment of falling gas prices.