WTI Crude Tumbles To $47 Handle As OPEC-Compliance Drops

Tyler Durden's picture

Crude oil prices have retraced 50% of their pre-OPEC-deal hope rally and dropped back below $48 as JBC Energy reports OPEC compliance dropping to 92% in May from 96% in April.

Additionally, Bloomberg notes: OPEC-14 OUTPUT ROSE 370K B/D TO 32.5M B/D IN MAY: JBC ENERGY

“There continues to be considerable skepticism about the effectiveness of the production cuts,” Carsten Fritsch, an analyst at Commerzbank AG in Frankfurt, said in a report.


“Oil prices are still trending towards weakness.”

WTI hit $47 and Brent dropped below $50.


Tonight brings inventory data from API.

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ZippyBananaPants's picture

Someone making lots of money on these swings.

E.F. Mutton's picture

Rig counts up 114% YOY here in TexArkOma land.  You can always tell because the first thing the oil workers do is NEW TRUCK

And, my buddy at the local pawn shop says people are getting their guns out of hock instead of vice versa

earleflorida's picture

perhaps this can shed some light on the 'RIFT' that 's becoming a [?]desert[?]'d cataclysm...

http://www.atimes.com/writer/sami-moubayed/       "Qatar, Saudi Arabia open crack in united front against Iran"

earleflorida's picture


alot going on between the scenes with Syria, Qatar, and Iran?

"Rights group denounces Qatar for deporting Saudi activist"   <WTF>   I thought SA was an  [ally]!?!... of sorts?       http://www.middleeasteye.net/news/rights-group-denounces-qatar-deporting-saudi-activist-1812089336

rights group no where to be found in yemen, syria, libya, palestine, iraq, etal.... but, VERY overtly concerned about Qatar all of a sudden--- perhaps the Qataris are sending a cryptic message on hypocracy to the USSA via Saudi Arabia mythicqal orb!?!

AlexCharting's picture

We are watching the death of an industry

Peacefulwarrior's picture

If the Electric car becomes a real proficient distance player and can improve it's operating costs, The Oil industry is definitely in concern.

toocrazy2yoo's picture

Yer delusional. Have you forgotten that oil/gas/coal generates 80% of the electricity in this country? When it makes sense for fossil fuels to generate the electricity for electric cars, let me know. The inefficiencies are worth about 45%. The electric cars you bow at the alter of, aren't worth their scrap value. Not to burst your stupid fuckin' bubble or nuttin.

Atomizer's picture

Same bullshit they pulled off with China last night, create a artificial GDP number. Remember, the entire financial globe operates under Petrodollar recycling. courtesy of Henry Kissenger under Nixon administration. Breton woods. Then create derivatives to remove Glass-Steagall. Rosey fake market. 

The lower the dollar, the higher price of goods. It's a false indicator of real GDP. 


Atomizer's picture

I don't watch TV that much. New Dodge Rams with a $9,500 incentive. The big three are channel stuffing. Alligator tears, bail us out.

Same bullshit, built more cars/trucks than demand. Expects taxpayer to cover bill on blotted inventory.

Fuck yourself cunts. Operate like anyone else. Balance your fucking accounting books. I remember your NET terms were 120 days. Did you move it to 180 days?

That legacy union monthly has to be killing you. And no one is buying your shity automobiles

In financial terms, you're at a death cross.  

scubapro's picture

.....and any comments on the jump from 47.73 at 11.30am edt to 48.6 in a mere 45 minutes.   nothing says 'stable liquid market' like a 2% climb in the worlds most important resource!

mily's picture

Record API draw tonight then...

B1G mNy's picture

I love it I love it I love it! Suck on that OPEC. Let's keep in the 40's. From IBD 

In 2012, flying high, OPEC pulled in $1.13 trillion in revenue. Last year, that fell to just $433.4 billion. B$

Sapere aude's picture

A few are in need of brain transplants here.

Who suffers most with the drop in oil price...Saudi, Russia or the USA oil industry.

If you think that shale will ever be cheaper to produce than conventional wells, you need to see a doctor urgently.

A horizontal well starts off in the main as a conventional well before going horizontal with laterals and additional fracs etc., so there is no way on earth it could ever be cheaper!

Likewise I see the FAKE NEWS by posters on this board about demand falling??? SIMPLY NOT TRUE, PROVABLY NOT TRUE.

If oil was as plentiful as suggested the US would not have been tapping the SPR reserves for the last year, biderectionally pumping it back then accounting for that as INCREASED PRODUCTION, which at the time and since I explained WOULD result in the US having to notionally sell all or part of the SPR in order to balance the books, and explain away the loss of millions of barrels from the SPR.

Sure enough that's under consideration now...of course it is....because its the only way to balance the books and explain the millions of barrels missing from the SPR .

So arrange a fictional sale of fictional barrels of oil that no longer exist, and the buyer is no doubt going to be those companies who used this as production previously anyway.

Slight of hand.

Its amazing to me that some who are willing to acknowledge that gold and silver markets are rigged with bits of paper, are then unable to comprehend that this corruption goes much deeper.