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WTI Crude Slides After API Reports Another Surprise Inventory Build
After nine weeks of inventory builds in a row, expectations were for a modest 900k barrel draw in total inventory this week. Expectations were crushed as API reported a much-larger 1.6 million barrel build - the 10th week in a row. After three weeks of very significant builds, Cushing - having seen its storage capacity increased to 73mm (from 71.4mm) barrels - saw a smaller-than-expectd 433k build (+1mm build exp.). WTI prices had drifted higher into the API report (after an extremely volatile day) but slipped lower after the print, as anxiety builds ahead of OPEC.
Total Crude build extends to 10th week...
Crude reacted immediately...
The question for the OPEC meeting is just how much crude and its options will be manipulated?
Charts: Bloomberg
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surprise to who....the world is awash in oil
USDCAD to 1.5? :O
some resistance at 1.33 and I do remember 1.5. (2000). good times.
OPEC will do nothing. The US shale frackers owe so much on junk debt they are getting it rolled over by the lenders they now " own" due to the girth of their numbers. Guess they were harder to kill off than OPEC/Saudis predicted.
If OPEC/Saudis are out to crush shale oil production in the US, it would make little sense to tighten the spigot now. The pain in the oil patch may be around for a while longer.
http://www.marketwatch.com/story/dont-expect-saudi-arabia-to-back-down-w...
I think the word is "unexpected." The smartest people in the world always seem to find things "unexpected". As in peak oil has unexpectedly gone the way of global warming which unexpectedly stopped almost two decades ago.
Fuck me.
BT
Come on ZHers. You really buy into this bullshit it was this miraculous "supply glut" that just Happend to occure juuuuuust when the USSA wanted to punish Russia, Iran? Tell me your not buyin it. Odd that WTI went from 115 to mid 40s in 4 months 08-14 to 11-14 ?? No odd timing that QE ended right around that time? Look at the chart. You all should know better by looking at Equity Index Ponzi. No such thing as an asset that is priced naturally. Your not telling me WTI is this last bastion of price discovery. ALL asset prices are determined not discovered. WTI is there because someone wants it there. High equtiy ponzi price=up Help bank criminals. LOW WTI hurt the only leader that can save us
I've been saying this the whole entire price drop. It's all about trying to punish russia. They could easily turn this into a non glut and have oil above $100. Look at what they did to the stock market.
What I do believe, is the REAL impact that market manipulation has on my industry, as a merchant mariner in the GOM offshore oilfield...
Was $40 the norm or was $115 the norm? I say the norm is closer to $60.
The oil from Syria and Iraq is so greasy that it keeps slipping through the greedy Saudi hands. And it is taking far too long to get a new pipeline through Assad's Syria. Remember that when Obama echoes his mantra: Assad must go. And now that Turkey has been exposed for criminally dealing with ISIS, they lost their short-term profits awaiting a pipeline deal.
Russia has thrown the monkey wrench into their machinery. And even without the full production of Syria and Iraq, we still have a glut.
The world might be suffering a tiny bit of demand destruction as well. http://www.harperpetersen.com/harpex/harpexRH.do?timePeriod=Years10&&dat...
I saw a post today predicting $1.00 a gallon gas. Supposedly in NJ it's already $1.99. Here in Socal $2.43. I hope the price of oil drops below $10.
$1.96 to $1.99 around Gainesville Fla., it was $1.92 around Byron Ga. back in September, so it's probably lower up there now.
$1.58 Oklahoma City, $1.53 Amarillo.
I just pull up to the pump now and fill up my trunk! It's so darn cheap!
I’m impressed – that new storage capacity number for Cushing was released only yesterday (in the EIA’s semiannual storage report). But even with that larger capacity, Cushing is still over 80% full…