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WTI Crude Extends Losses As Production Rises & Inventories Unexpectedly Build
Last night's surprisingly large inventory build reported by API (+2.9mm vs expectations of -2.5mm) sent hopeful crude prices reeling (not helped by comments from Iran and Saudi this morning). Following last week's huge 5.9mm draw, DOE reports a 2.63mm build (confirming API's data). Cushing (which API reported as a 923k build) also saw DOE report a 0.9mm barrel build (pushing closer to its limits). As we have detailed previously, December typically sees major drawdowns in inventory as energy firms attempt to minimize tax burdens into year-end. December 2015 has seen a notably lower-than-expected drawdown.
- *CRUDE OIL INVENTORIES ROSE 2.63 MLN BARRELS, EIA SAYS
Total crude inventory rose notably in the last week - very much against the seasonals. This is the month when drawdowns are supposed to be the largest.
Cushing inventory rose once again:
- CUSHING CRUDE INVENTORIES RISE TO RECORD 63M BBL, EIA SAYS
As Global oil invemntories near storage limits...
Crude production has been "steadily rising" for the last few weeks...not what they need at all!
WTI Crude prices rallied up to $38 - the scene of the crime before a huge build 2 weeks ago sent prices falling - then tumbled overnight after API. The DOE data has comfirmed that build and losses are extending...
* * *
Finally, do not forget - December ALWAYS see notably drawdowns as firms lighten up inventories on their balance sheet ahead of year-end to reduce tax burdens...
And judging from history, as Bloomberg notes, it should resume as soon as the festive season is over: Stocks have built by 3.2 million barrels on average in January since 1921.
Charts: Bloomberg
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Housing great, stocks great,cheap oil great
I don't feel great
Big Pharma has plenty of pills for that (mind control). The only catch is you may have a psychotic break and engage in a mass shooting or commit suicide.
Enough of the good things.What are the bad side effects ?
Perma limp dick.
Do you feel grate?
FFS !!! HOW can ANYONE find an oil inventory buildup UNEXPECTED with everyone and their grangmother is going balls out on production and the world is going into recession with less oil demand ??
Valuation of crude oil is one of the main issues of concern for financial analysts all over the world now because of the stable trend to oil prices’ fall, outlined in 2014. In just two years ‘black gold’ price slumped by almost 60%, provoking a number of negative macro-economic processes and the fever hitting the global currency market. Currently oil price continues its decline amid the disproportionate increase in oil supply against growth in its demand at the market. The main factors shaping this process are:
http://homment.com/global-oil-market-prospects
Looks like the bottom is in. What does Gartman say?
<-- A turkey fryer
<-- A hoverboard scooter
Hell, I forgot what question I was going to ask to persuade you to participate in this stupid survey.
Things most likely to catch your garage on fire this holiday season?
Perfectmente !
Yes, most of domestic usa production come from iraqi oil fields, but in some sense, it is USA production
EIA, 25 december:
U.S. crude oil imports averaged 7 . 9 million barrels per day last week, up by 566 ,000 barrels per day from the previous week. Over the last four weeks, crude oil imports averaged 7 . 9 million barrels per day , 4 . 7 % above the same four - week period last year
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From week to week, storage rise but import of oil also rise, which is really funny to watch in reports.
BINGO. 10 Cubanas for YOU !!
It is the imports. Imports predominately support zio-whabbi global terror.
Saudi War on Russia and American Shale = good. War on Saudi ? No way. Deep State USSA policy matches Zio policy and is in truth a war on global citizenry freedoms.
INSANITY
I NEVER would have believed that American citizens, Russia, Iran, and countless global refugees would be in a death spiral battle against the Tyrannical Statists in DC, ZIO-BANKSTERS and the sick fucks in Saudi, et.al.
Yeah, I can only hope Obama spends a 2016 2 hour (30 min late to the podium) Presidential Address admonishing all US allies on their reckless carbon generation in the MENA. Afterall, global warming is the biggest threat of his administration and his defining legacy, so it would make total sense that the most excessive carbon producers who have increased production since June 2014 to be "global terrorists".
Cut off US arms sales and energy imports until Saudi signs a carbon pledge capping Saudi production at 2mm bbls, just to align DNC domestic policy to his Turkey/Saudi objectives.
Imports will continue to rise as the crack spread between WTI and brent has closed
Inventory may have increased by 3.2 million barrels on average in January since 1921, but last January it rose by about 21 million...
Watch out Droogs.
This is a set up.
When the War cranks up Oil cranks up.
After oil drops to 20
And, since we were told yesterday that stocks reacted to oil's rise by rising themselves, stocks today in the wake of more crude carnage are...levitating off the lows.
Logic. Who needs it? Not America.
Pffft.. 400 million barrels above baseline storage levels. The world blows through that amount of oil in around 5-6 days. Not really that much of a glut in reality.
"Cheap" fuel after refining, yet no one can afford it.
What a great recovery we're having.
Filling my empty beer bottles with gasoline and rags.
Low oil prices are a boon to average Americans and a kick in the butt to Russia - which primarily exports energy - so 2016 is shaping up to be a great year for America!
I want to wish all my good friends on Zero Hedge a happy and prosperous New Year!!
More "unexpected" results?
Fucking hell has there ever been something expected for these clowns?
Imports up 4.7% year over year; production down 0.2% year over year; inventory about 110 million more barrels (<6 days). This can change faster that in appears. Will it? Who knows?
http://ir.eia.gov/wpsr/wpsrsummary.pdf