Oil Holds Losses After Inventory Data Shows More Builds

Tyler Durden's picture

Having tumbled to a $50 handle during the day session, WTI Crude whipsawed to unchanged after API reported 1.53mm crude build (in line with expectations), a Cushing draw, and builds again (after last week's massive builds) for gasoline and distillates.

 

API

  • Crude +1.53mm (+1.5mm exp)
  • Cushing -187k
  • Gasoline +1.69mm
  • Distillates +5.48mm

After a big crude draw and massive product inventory builds last week, it appears things have calmed down a little...

 

The reaction was a quick jump higher and fade back to unch...

 

And finally we note that:

  • *GUNDLACH EXPECTS OIL TO VACILITE IN $45-$55 RANGE IN 2017

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Hohum's picture

But what about efficiency?  Chant "the extraction cost of oil is zero" one hundred times:

http://www.mrt.com/business/oil/article/Shale-field-costs-could-rise-by-...

abyssinian's picture

Time to have meetings on production cut again! 

Sudden Debt's picture

Maybe those Arabs can start selling sand?

you know...

a kids toy... build your own Saudi sandcastle in the living room...

but without the slaves... the kids would have to build it themselves...

MikeM54's picture

Thanks to those of you who finally shut up HokumY and LowerDeleware.  Their tripe was getting really old. 

John Beau's picture

Well Delewere has been around today. Saw him chatting about Shepwave again.

But the shepwave has been nailing the markets at least so that is good.  https://t.co/LM81DZlPyF

 

 

 

 

 

LowerSlowerDelaware_LSD's picture
LowerSlowerDelaware_LSD (not verified) John Beau Jan 10, 2017 7:51 PM

But your flood of spam NEVER gets old, right schlepwave spammers John Beau and MikeM54 (both members for 3 weeks 6 days - what a coincidence that your spam accounts were set up at the same time!)? Do you really think that ZHers don't understand that your accounts (most of them spelled out, below) are the same spammer - that you are one person "talking" to himself?

Some of the best financial advice that you'll get on ZH is right here. Yes, lets discuss it, John Beau and MikeM54!

*
NEVER TRUST A COMPANY THAT HAS TO RESORT TO FLOODS OF SPAM COMMENTS FOR ADVERTISING.
*

These spam accounts, identified below, are once again spam commenting for their product. They then comment amongst themselves, giving themselves small flurries of thumbs up and thumbs down to people against their spam. They even flood the ZH abuse email account complaining about the honest ZHers who want their spam to stop.

If I didn't know better I'd think that they are intentionally trying to ruin whatever reputation that their business might have with ZH users by brutally spamming the ZH comment sections.

What shape is a company in when it has to resort to flooding web sites with spam comments becasue they can't afford to pay for advertising - they must use free (although incredibly annoying) "advertising?" With so much time spent on it their spam operation must be making some BIG money. Otherwise they'd skip the time spent spamming and use it instead to do trading, right?

The following is a list of their many spam accounts on ZH. Note how they are always the same ones talking between themselves and ripping into people asking them to stop the spam flood: AliSONY, Babs.St.Louis, Billy G, Chi Juan, Dr.Carl, ErikE, FemDayTrader, Irvingm, jasony, John Beau, KC Spike, MadhyaBharatx, MexInvest, MikeM54, Mon T, P Christmas Carole, Pinky and the Brain, RonnieM, Sonya B59, Stan Your Man, StevieTexie, Van G, and wisetrader224

So, I'd like to discuss some financial questions 1) Does it make sense, financially, to pay a company that can't afford to pay for advertising so resorts to spam comments for their "advertising?" 2) Can a spamming company be trusted at all let alone their "analyses" be trusted? 3) Why is an "analyses" company spending so much time and energy spamming when they could simply make a killing with their "excellent analyses?"

Please discuss these questions with me, John Beau and MikeM54. You've been saying that all you want to do is discuss these things. Lets discuss them!

Hohum's picture

So how much have inventories risen in the last 12 months?  About 29 million barrels, 36 hours of US consumption.

https://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=PET&s=WCESTUS1&f=W

sinbad2's picture

The EIA data is as fake as all the other Government data. All American government departments are now the playthings of politicians.

Hohum's picture

Maybe so.  But if all data is fake, isn't political discussion just spouting nonsense off the top of our heads?

sinbad2's picture

They will never control oil prices, it doesn't matter how much OPEC and Russia etc agree to cut production, because the worlds second largest oil producer, the USA will never agree to limit production.

The idea that Russia would just hand over market share to the US is crazy.

The US needs 60 bucks a barrel on average to make a profit, so oil will never go above 60 bucks, at the current dollar value.

Currently there are 23 barrels of oil to an ounce of gold.  In 1960 the rate was 12 barrels to the oz.

angry_dad's picture
angry_dad (not verified) Jan 10, 2017 10:27 PM

FOR EVERY PRODUCTION CUT BY ONE PRODUCER, ANOTHER ONE INCREASES PRODCUCTION TO MAINTAIN THEIR CASH FLOW.

THIS GAME WILL GO ON FOR DECADES.

KIND OF LKE MUSICAL CHAIRS, NOBODY WANTS TO GET STUCK WITHOUT A SEAT AT THE WRONG PRICE

adr's picture

And gasoline is now above $2.50 everywhere around me even though oil has barely gone up. 

I saw $3.39 diesel in PA today with Reg Unleaded $2.79.

Who needs $100 oil with gas priced like that. Yeah I know PA tax,  but refining profits are through the roof.