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WTI Tumbles To $43 Handle After API Confirms Huge Inventory Build
API reported a huge 6.3 million barrel inventory build (notably larger than expected) extending the series of build to seven weeks. Even more worrying was the massive 2.5 million barrel build at Cushing, even as gasoline inventories fell 3.2mm. WTI immediately dropped 35c, breaking back to a $43 handle after-hours.
A huge build...
But for Cushing it was massive...
The reaction was quick and on heavy volume...
Charts: bloomberg
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Damn speculators
Its not speculators Seymour. Its third party HFT spoofers ramping it up. Do you really think with oil coming out of everywere and no place to store it there are speculator out there going long oil? Let alone the plunging global economy? Its 3rd party spoofers for the oil producers and the government pumping it up. (taxes)
So this is a demand story?
Gas under 2 bucks at the Costco ... makes you want to go buy a Tesla.
I hope (and gasoline) oil prices remain low and unsold Teslas collect dust.
that fantasy is over....tesla is done and so is the demand economy
How will this affect Prius sales?
Well, in Europe, if you can pay for it, you get a refund of 120% through your taxes so if you're rich enough, taxpayer give you one for free and give you a bonus of 20% extra on the car.
Environnement and stuff... if you're rich, you're a good guy...
And the poor can't even bring in a penny for a bike which is way better for the environnement where those batteries are crazy poluting...
We have a socialist corrupt liberal fascist system where stuff like this works.
Same with solar panels, you get them for free and the once who can't afford them pay a extra 250 euro's a year extra to fund them.
It's the robin hood heist but in reverse.
This means go long, right?
Going API shit
all those solar cars are hurting demand
needs to raise gas taxes and road tax
Remember when those storage tanks would be full by july?
That's been a while now he?
How long will they keep using these graphs to push the oilprice down?
And to who did the US sell it's strategic oil reserves to buy time on their ceiling deal?
And where did they store that?
certainly not a demand problem
us consumption is more than two times us production.
in a good management you would not make such a storage to avoid imports.
so it is meaningless
maybe they prepare for a war ?
Gee, I thought Apple was the only company in the world experiencing difficulties.
How can the analysts that cover oil be surprised every fucking month? Up.......they're surprised. Inventory down......surprised. Surprised if no change.
Oil can be made into things like gas, diesel, jet fuel, plastics, and Vaseline. Looks like it's time for more Vaseline.
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Would somebody like to explain, and maybe Tyler can hand this off, but how the @#$% do we get a build like this out of the blue like this?
Where was all this oil being refined or shipped from, or just 'what', how could this happen?
Where did all come from, all of sudden? There must have been a bulge in the pipe or something, eh?
•?•
V-V
6MM bbl of oil = 3 big supertankers
Week to week variations don't mean much. It could be weather or just the vagaries of scheduling at ports. Or anything.
Weeks of builds in a row means something, though.
NO surpise here. Here comes $20 oil ... and once again Putin is screwed. He's getting played by the Iranians. Putin supplies the weapons, troops and $5 MILLION per day to support Syria. Meanwhile, Iran gets off sanctions and FLOODS the worlds oil markets and Putins economy goes through the floor. I thought Putin was some sort of "chess player"?
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Iran is hiding more oil at sea than we realized
One of the biggest mysteries in the oil market surrounds just how much oil Iran is hoarding at sea.
That's a key question because Iran's nuclear deal with the West could lift crippling sanctions, and pave the way for tons of Iranian oil to hit the market. A surge in Iranian exports would only deepen the oil supply glut that has sent prices to fresh six-year low.
Iran claims it's not stockpiling oil in tankers in the Persian Gulf, but no one believes it. Up until recently, energy experts thought Iran's vessels held 30 million to 40 million barrels of oil.
But maritime surveillance firm Windward has harnessed sophisticated technology to determine Iran is actually hoarding 50 million barrels of oil. That's up nearly 150% from April 2014 when Windward started tracking this closely-watched metric.
While Windward's surveillance has indicated the huge stockpiles of oil that Iran is hiding at sea since early June, other forecasters have estimated a lower amount. Now they are ratcheting up those guesses. Platts said Iran is storing as many as 53 million barrels of oil and condensate at sea, up from a previous estimate of 40 million to 42 million.
42-49 range....nothing new. Wake me up when it hits 35 or 55.
C'mon oil consumption in the US ticked over in 2004 and actually went negative in 2008-9 which means we've hit peak demand.
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The surprising decline in US petroleum consumption
By Lydia Cox World Economic Forum
Jul 10 2015
There is even greater divergence in longer-term projections – the most recent projection for 2025 is 34% lower than the projection made in 2003. This 2025 consumption surprise frees up roughly $250 billion for spending on other things.
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We find more. We use less. Putin is screwed to the tune of billions and billions which means Putin is screwed. Period.
The wankers will get OIL back up to $100 when it suits their plans.... The fundermentals only matter when they say so.
The US hit peak demand in 2006. EU and Japan were 2004. Nearly all growth has come from the emerging markets, especially China.
Anyone long oil is either long China or hoping for a big war in the ME
Here are some signs of a coming recession.
1. Business loans for M&A not CAPEX.
http://www.zerohedge.com/news/2015-10-15/there-goes-final-pillar-us-recovery-loan-growth-paradox-explained
2. Factory orders continue to drop
http://www.zerohedge.com/news/2015-10-02/us-factory-orders-flash-recession-warning-drop-yoy-10th-month-row
3. Default risk spikes
http://www.zerohedge.com/news/2015-10-02/us-financials-default-risk-spikes-2-year-high
4. M&A set record
http://michaelekelley.com/2015/05/29/mergers-and-acquisitions-set-record/
5. Fed sees 2 bubbles
http://michaelekelley.com/2015/02/20/fed-warns-of-two-bubbles/
o Commercial Property higher than pre-2007 level.
http://nreionline.com/finance-investment/cre-prices-are-now-officially-above-pre-recession-peak
o Global Corporate Debt Market hits $5 trillion.
http://fn.dealogic.com/fn/DCMRank.htm
Here is how to prepare.
http://michaelekelley.com/2014/10/16/8-things-to-do-when-recession-happens/
Here is how to get your mind off this stuff.
http://michaelekelley.com/category/humor/
Good luck!
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Everybody gather in a circle, hold hands, and buy moar stocks with all the money you are saving!
The dark forces at play always pump it up. I would say they are 3rd party spoofers for the government and the oil companies. Government you say? Yes...the taxes they loose by the price down. Plus...it looks bad in the unemployment numbers.
Problem, at this hour it has stilll not broken the 43.60 area. It needs to do that to drop lower. If it doesnt in the next 24 hrs, they will ramp it back up.
Strange Daze in Los Angeles.
There is a push to change the slow lanes into bicycle lanes...even in Hollywood and Sunset Strip.
I've got a theory, if the economy collapses then many may try to bike it around locally, use mass transit to go to work. What if.
It would be a modern middle-ages type economy, where Oil prices eventually skyrocket due to inability to get out of the ground when demand falls. If Oil goes down to $5 BBL then many wells will shut down, and supply will dry up, and then prices might go sky-hi as only wealthy will drive around. Then some production might get nationalized. Many EM countries are going through similar now.
Its the only upside I can see to where 'green' may be going at a local level.