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Crude Slammed To $44 Handle After Inventory Surges Most In 7 Months
The DOE just reported an 8.028mm barrel inventory build in crude stocks, even larger than the API reported data. This is the highest weekly build since April 3rd and is dramatically higher than expected. Crude prices are pressing on lower, with the new Dec contract now trading with a $44 handle. To make matters worse, US crude production was unchanged.
Biggest inventory build in over 6 months...
Sparks more selling in crude
Charts: Bloomberg
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Who had advanced notice of today's pending shit storm? A lot of EOD buying there yesterday, and it wouldn't be 'hedges' https://finviz.com/futures_charts.ashx?t=VX&p=m5
Going back down due to a global recession not experienced since the Great Depression.
the easiest trade a few months ago was the convergence of distillate and crude with the holiday confidence booster needed..........wish i jumped on it.
with gas prices this low, why would anyone buy unleaded fuels when they could have premium?
Because premium is still unleaded.
with gas prices this low, why would anyone buy unleaded fuels when they could have premium?
No reason to unless your car requires it. Premium does not add BTU's (power), it adds only octane that your car wont need or utilize if it is designed to run on unleaded.
That, and running leaded gas in a newer car will fuck up your catylitic converter.
Hasn't been any lead in gas since the 70s.
You can buy leaded gas today... no problem.
100 Octane Low Lead (100LL)
http://www.100ll.com/
Who needs a hard asset and military necessity like oil anymore when you can buy stawks, treasuries and derivatives and all sorts of solid 100% guaranteed full faith & credit paper.
http://aviationweek.com/bca/getting-lead-out-future-avgas
The FAA has been searching for a LL substitute that can be used in piston engines for quite some time.
The problem is that nothing lubricates the valvetrain like lead.
Lead was put into fuel for very, very real reasons.
Cars are not in service as long as airplanes and airplanes don't have the margin of error that a car has.
100 LL is what I have been using in my lawn mower and motorcycles for years. It doesn't go stale and gum up like auto fuel over the winter.
You surely can't be serious can you? Did you miss the tag on that asinine comment?
Apparently though - that kind of moronic thought process is why lower gas prices don't provide the boost they SHOULD to consumer spending because instead of pocketing the saving from lower gas prices, moron consumers move up to premium instead and spend a similar price on gas by buying premium!
Personally, I couldn't believe this as it's something I've never done - but just yesterday I read a study that said this was the reason that lower gas prices don't translate into the higher consumer spending that they should!!!
In fact - here is the article I read about that very topic!! And then you make (surely a sarcastic right??) that very stupid comment!! I am in stitches ROFLMAO!!!
http://www.macrobusiness.com.au/2015/10/heres-why-cheap-oil-aint-thrilli...
When gas prices fall, Americans reliably do two things that don’t make much sense.
They spend more of the windfall on gasoline than they would if the money came from somewhere else.
And they don’t just buy more gasoline. They switch from regular gas to high-octane.
A new report by the JPMorgan Chase Institute, looking at the impact of lower gas prices on consumer spending, finds the same pattern as earlier studies. The average American would have saved about $41 a month last winter by buying the same gallons and grades. Instead, Americans took home roughly $22 a month. People, in other words, used almost half of the windfall to buy more and fancier gas.
This is not rational behavior. Americans spent about 4 percent of pretax income on gas in 2014. One might expect them to spend about the same share of any windfall at the pump — maybe a little more because gas got cheaper. Instead they spent almost half.
Americans, in short, have not been behaving like the characters in economics textbooks.
There is, however, a pretty good explanation for this kind of pattern. Researchers have found that people treat money as earmarked for particular kinds of spending, a tendency behavioral economists call “mental accounting.” If someone is buying rounds at the neighborhood bar, people tend to treat the money they didn’t spend as “beer money,” and sooner or later they tend to spend it disproportionately on beer. As a result, they end up drinking more beer than they had originally intended.
A lot of people who drive cars that require premium gas have been putting in lower grades for years due to the insane price difference. What used to be $.20 per gallon between 87 and 93 is now $.70 at most stations.
The new direct injection engines have been certified to run on 87 but they really do require higher octane due to the far higher compression ratios.
It also doesn't help that all the gas companies advertise premium gas as being better for any car.
It simply underscores the thesis that John Q Public is a moron.
The greatest information repository in human history is at the avg schmuck's fingertips accessible via home computer,
work computer, Ipad, handheld, apple watch, etc. The answer to almost any question is mere moments away.
It is the greatest bullshit debunker known and too too many people are too too lazy (I'm being kind here) to "Google it".
In Europe we don't even use 87 anymore. The lowest you can find is 91-92 depending on the country and in some places it's 95. You guys are way behind, I wonder why that is though.
You are confusing computation method with an actual difference in "octane".
USA uses an average of RON and MON thus USA = (RON + MON / 2) which is called AKI
Europe uses RON only which gives a higher number.
So if you are buying 95 or 98 in Europe you are not buying 95 or 98 Octane by USA standards. You are buying 87 and 91 by USA standards... i.e. the same shit for double the price of the USA because of the oppressive European fuel taxes.
Quote:
"Motor Octane Number (MON), which is a better measure of how the fuel behaves when under load, as it is determined at 900 rpm engine speed, instead of the 600 rpm for RON.[1] MON testing uses a similar test engine to that used in RON testing, but with a preheated fuel mixture, higher engine speed, and variable ignition timing to further stress the fuel's knock resistance. Depending on the composition of the fuel, the MON of a modern gasoline will be about 8 to 10 points lower than the RON, however there is no direct link between RON and MON. Normally, fuel specifications require both a minimum RON and a minimum MON.
Basically MON uses a higher stress test and because of that it gives a lower Octane number as the fuel is under greater stress than when it is being tested through RON method."
http://ir.eia.gov/wpsr/wpsrsummary.pdf
491mill barrels was the peak of the build to late APril 2015. Current level is 477mill.
Listen to my story about a man named Jed;
poor mountaineer barely kept his family fed;
then one day he was shootin' at some food;
and up thru the ground came a bubblin' crude;
oil that is; Black gold, Texas tea.
oil had been dropping into the announcement....bad news gets priced in as normal course---now a bit of an upswing on hopes someone/anyone will cut production. 47/48 seem to be thick price areas. but the reality is china is at zero growth and the rest is contracting. joe and mary sixpack feel relief at low prices, not enthused to spend more elsewhere....they all have new home payments to make!
Well if the pattern holds then end of next week should see a giant spike. Another month of decline undone in seconds.
the real pain is coming...there is so much supply that when these companies start getting desperate they will sell at $25/barrel...the world has the bggest supply in over 80 years....and thousands of wells are done...and they haven't even tapped them.
Old Yellen to the rescue? Or maybe a nice, hot war?
Gart-Zero's Oil "slam" instead "rockets" the price upward...
"To make things worse,US crude production was unchanged". That my friends was most important part of this post....
Idiots at the helm..... Sick of hearing about demand destruction. Bullshit. Cut off the imports ! Impose tariffs . FIFY, dumbshits. Oh, Saudi owns parts of a couple of the heavy sour dependent Gulf Coast refineries... So we can't use Canadian or Venezuelan heavy, eh? Fuck me running. Entanglements SUCK for consumers and the billions NOT being pumped directly into local economies are going to partially fund ISIS. Bubba ain't buying trucks, and investments that generate main street production cannot pay out the taxes that support WalMart and the free shit army of non-producers. Fuck it, hit the presses and print moar money. PS: downvoters > you are being set up by the banks and the government (and refiners) for 4 dollar gas, 5 buck per mmcf to run your furnaces and generate electricity in two years. Enjoy bashing the real producers of energy while the PTB squid has the last laugh. Same as it ever was after 1970.