This page has been archived and commenting is disabled.
Crude Holds Gains After Biggest Inventory Draw In 6 Months Offset By Major Build At Cushing
API's reported huge 3.6mm drawdown in total crude inventories (against expectations of a 2.33mm build) was just the catalyst to send crude prices soaring overnight and DOE just confirmed it with a massive 5.88mm draw - the largest in over 6 months. However, initial exuberance was tempered as Cushing saw a 2.045mm build - its 7th week in a row. And finally, crude production rose for the second week in a row.
Huge drawdown overall...
But Cushing continues to get more full...
Production rose for the 2nd week. Demand is down 0.8% YoY.
For now Crude is holding gains...
but is having trouble breaking above FOMC highs...
Charts: Bloomberg
»
- 41 reads
- Printer-friendly version
- Send to friend
- advertisements -
How much crude can Cushing comfortably confine? Does it really matter considering the world wide glut?
<How's that Petrodollar holding up?>
Crude's initial downturn was malinvestment caused by manipulated low interest rates, and now because of excessive debt in the oil industry, and social programs in oil exporting nations proper price discovery has been delayed. Explained here.
Good read, thank you and Merry Christmas.
The oil doesn't magically disappear and they don't talk about refined stockpiles. Even the act of pumping from one tank to the other effects the storage number. Not to worry though, the traders will make their year end bonus......
Even if it managed to break through the post-fomc 'barrier' where's it gonna go? There's still a glut, reduced demand and storage problems.
Oil going no where but down.
To jump or not to jump (in) that is the question?
what etf do you recommend for put / calls for oil
dwti for down 3x leverage
uwti for up 3x leverage
I do not recommend buying either but shorting when possible to take the proper position for your trade. That allows you to take advantage of the contago effect from rollovers.
With all the extra fuel use at the end of the year this to be expected. There is still a huge never ending global glut of oil
I kinda of have to laugh at all the fools that think oil is going up to a profitable price. Russia to Opec have said to expect low prices for a long time.
Gasoline storage increased 1.1MB.
Let me guess; markets green, Corzine still not in jail, and everything is great in Potterville?
And Zeroes continue to sit on the sidelines with their bar of gold they bought at 1900/oz while the rest of us make money. Ready to trade that bar of gold for a loaf of bread yet?
Actually, a lot of my gold was bought when it was in the $300-500 range, but that doesn't fit your narrative does it?
Growing up there was this cranky bitch that lived down the street. She would always watch us skateboarding in the park. It would have been just fine but she decided to start telling us how dangerous it was at an ever increasing rate. Pretty soon it was almost every day she would be there talking about safety. None of us cared, we had fun we skated we tested limits. Good times.
One day a buddy of mine was trying to tailslide a bench and his board shot out from under him...he was fine. The board was not....it was hit by this womans dangerous shin..and was bled on. Guess the moral of the story is that if you arent into what you are observing, why are you there?
My first metals were bought in the 90s, i know what im doing. You are here ...because why?
One other thing..that cranky bitchs son looked ike a fag with his neon helmet on after that poor unfortunate skateboard injury.
RIPS
Non-sequitur much?
DE jour isnt saying standing there talking shit for no reason? Why are they here? The cranky bitch and Jour are correlated. Thats Sequitur?
THink first ..then punch.
RIPS
1) So long as the market remains contango Cushing will stay full (for all practical purposes).
2) API numbers will rarely match with EIA, although they will be indicative of direction of change and often magnitude, API reporting is voluntary, EIA is mandatory.
Traders just need volatility to make money. Nobody thinks we are out of storage space except all of those tanker Captains in the gulf. Has anyone actually seen all of those allegedly full storage units and if not- who's word are we accepting that they are full?
Check the waterlines on the tankers, how low are they riding/setting?
YOY crude oil imports up, YOY production down, demand WAY down.
http://ir.eia.gov/wpsr/wpsrsummary.pdf
The main reason that most people aren't even aware of today that is having an effect on the oil inventory numbers is actually do to a Texas Tax situation.In Texas right now oil companies reduce their inventory in storage because Texas actually taxes the oil storage.It has education tax and a number of other taxes on inventory numbers at this time of year.It is common at this very time of the year to do this so oil companies can save hundreds of thousands of dollars.