US Crude Inventories Are The Highest Since The Great Depression

Tyler Durden's picture

In case you were under the impression that oil was stabilizing, we thought this chart might help clarify just how "different" it is this time in the energy complex...

U.S. crude inventories are at levels last seen when President Herbert Hoover was battling the Great Depression.


After this week's build - Crude stockpiles climbed 8.38 million barrels to 494.9 million in the week ended Jan. 22, the highest since November 1930, according to weekly and monthly data from the Energy Information Administration.

It did not end well last time...


Charts: Bloomberg

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poland spring's picture

And yet DWTI falling...

BullyBearish's picture

Give it time..."There will be growth in the spring"

MeetTozter's picture

Have we at least been filling up our Strategic Oil Reserves is such a favorable market?

froze25's picture

and oil is spiking on this?

I need more asshats's picture

I'm short crude. Anyone else? Can we share our feeling together?

Save_America1st's picture

wouldn't/shouldn't the U.S. have 10 times the inventory of 1930???

Save_America1st's picture

talk about lack of inventory!

BREAKING NEWS: COMEX Registered Gold Inventories Plummet 73% In One Day

Mr. Bystander's picture

Exactly. ~500mil barrels would be enough to run the U.S. for a month. That amount of inventory might have been significant during the Depression but not so much today. We'd need something like 17.5bil barrels today to match it.

gallistic's picture

+1 to both. Of course, you are correct; it is about the consumption rate, not the absolute nominal number.

Glad to see some common-sense thinking instead of knee-jerk reactions.

KnuckleDragger-X's picture

It's spiking on rumor and they aren't even mentioning refined stocks...for good reason.....

two hoots's picture

or this Flash:

Russia's Transneft says Russia and OPEC will discuss possible output cuts: TASS

moonman's picture

That would be stupid, we are selling our strategic reserves that we bought at $150 a barrel.

Don't you understand government econmics?

TxExPat's picture

Not sure, a couple of months back there was noise about selling OUT of the Stratetgic Oil Reserve (dispite low pricing) to window dress the deficit a little bit.  Havn't heard much about that lately, don't know if they backed off to avoid "buy high, sell low" and compounding the problems in the Oil patch, or if they went through with it, and are just hoping the no-one notices... 

ghengiskhan's picture

The US and everyone else overbought reserves to the point that there is nowhere to put it (there are god knows how many tankers floating in limbo marked for reserve).  This was part of the "let's fake oil demand" strategy over the last year.  This is why the smart money is saying it will absolutely drop to $20.  The little bit of demand we thought we had last year was fake.

NoDebt's picture

"There will be growth in the spring"

Yes, maize (you call it corn), which we will turn into ethanol and blend into our gasoline under government mandate.  

Side note.... I've got probably twice as many "pure gas" (E-0) gas pumps in my area as E-85 (85% ethanol).  Couple years ago that ratio was reversed.

KnuckleDragger-X's picture

I like my ethanol aged and on the rocks......

de3de8's picture

NoDebt, where pray tell is that?

NoDebt's picture

We should definitely keep subsidizing corn-based ethanol to be blended into our gasoline. Yeah, sure it rots out everything it touches in the fuel system and your mileage is worse by almost 10% but it's a small price to pay for where our TRUE energy independence will come from in the future- BURNING FOOD.

- Your benevolant government

DontWorry's picture

Fuel efficiency reduced 10%, you buy 10% more gas, gas tax receipts increase 10%.

Government needs you to pay taxes's picture

Dont forget all the engines it burns out.  Lotta sales tax on those, plus all the income taxes on the $40k per year mechanic jobs, which inflate the employment report without having to resort to job conjuring.

Vlad the Inhaler's picture

It also drives up the cost of food because that farmland could be used to grow something edible.

gallistic's picture

Monsanto GMO corn is not edible food.

Might as well get something out of it and burn that toxic shit inside engines.

junction's picture

In the United States and the world in general, there is one disaster after another, yet American reporters and editors are pretty much oblivious to anything but Captain Obvious stories.  So you only have surface reporting.  The collapse in oil prices is due to the massive industrial contraction occurring in China, the United States and Western Europe.  But, outside of reporting on bad weather events, American media practices "lies of omission" news coverage.  For over a year in Flint, Michigan, the city tap water was poisonous.  Every top level government official, at the city, state and federal level, did nothing but lie to the public about the disaster.  The national news media totally ignored the story.  Even now, no one knows the exact contaminant in the river water that dissolves Flint city lead water pipes.  The one woman who initiated the investigation had the water lines replaced with PVC pipe but she still has high levels of contaminants in her water. 

The United States now is run by liars like Obama who consider truth the first enemy.  Things are so bad that, if not for Trump, the two leading Republican candidates for president would be Cubans, one who is not a "natural born" citizen, the other whose uncle was the number two man in the 1980s to the leading narcotics distributor in Florida. 

NoDebt's picture

Because they're not news reporters.  They're propogandists for the state.

OldPhart's picture

You mean we haven't increased oil storage capacity since 1933?  No wonder everything's falling apart at the same time.

hedgeless_horseman's picture



We could export it, as Congress just unbanned their ban, but no nation can afford the Petrol Dollars to buy it.


poland spring's picture

And OIL rising, interesting.

flyingpigg's picture

Physical inventories, who's a red herring.

Let's bid up the futures Bitchez!

1stepcloser's picture

that's cause we are in one..

Jaspergers's picture

"since the great depression" is the new "since 2008"

TaxMeIAmCanadian's picture

Lower crude prices are coming. What do you do with your oil when there's no place to store it?

 Maybe even going negative. 

mandalou's picture

And the price spiked up. Supply and demand left the milky way. Everyone wave good-bye.

Rukeysers Ghost's picture

I guess we are going to have to drive more and heat our homes with the windows open to save us from a depression. Gotta get those inventories down.

SoilMyselfRotten's picture

Beano will take care of that for ya

new game's picture

obviously we need moar war to use up this growing stock of fuel...

new game's picture

pump, baby pump (:P)

2ndamendment's picture

Remember yesterday when the article on ZH claimed investors "should not worry" about running out of oil storage space? 


Good times, good times. 

firstdivision's picture

Good thing supply/demand do not dictate price, like a lot of other commodities. I'm looking at you natty and copper.

Goldbugger's picture

The GREAT DEPRESSION II is on it's way.

headhunt's picture

It is already here for many, the difference is that there are a multitude of government welfare programs in place which did not exist during the first depression. Most of which do not even require a person to leave home to sign up and receive benefits. If there was no internet you would see the lines wrap around federal and state buildings in most every city.

Panic Mode's picture

We are closer to WW3 than never before.

ewclam09's picture

I don't worry about WWIII. It will be over in few days and most of us will not be here and have no more worry... If you are still alive, you need gold, not cash.

Rockfish's picture

Gold will be a good thing to have along with a couple a hundred cases of BIC lighters and aspirin to barter with for that package of twinkies.

Montani Semper Liberi's picture

 My thinking is if WWWIII quickly wipes out most of the population, then gold will become almost worthless for a long time. If you are fortunate enough to survive such a depopulation, I'd think that PM's, guns, ammo, and even food would suddenly become abundant, just there for the taking.

 Personal skills such as gardening and animal husbandry (fresh food would be in great demand after one has survived off of canned and preserved food for a long period of time), water purification, medical knowledge, and community rebuilding would be the new gold standard in such a scenario.

 An extended economic malaise, with repeated disruptions in the "just in time" food deliveries, and electrical grid breakdowns would be, IMHO, the situation where gold would be useful.

FreeShitter's picture

WWIII will take care of all that and more.

stant's picture

Model A ford got about 26 mpg , I guess we need some bigger flatheads

minitrue's picture
minitrue (not verified) Jan 27, 2016 11:18 AM

My guess is the algos saw a decrease in crude at Cushing and somehow figured that was bullish.

flyingpigg's picture

If the price goes up on bearish news it's bullish indeed. As a trader that's all the info I need.