Trend continues up for oil
Oil is rebounding nicely since the report was published this morning. Combine with API report late yesterday that showed a nice drop in Cushing OK oil inventory and the trend to reduce the over supply is moving ahead
High Import levels remain an issue to the inventory build. Total petroleum product inventory had a slight decrease last week
"U.S. crude oil refinery inputs averaged 16.1 million barrels per day during the week
ending April 15, 2016, 163,000 barrels per day more than the previous week’s average.
Refineries operated at 89.4% of their operable capacity last week. Gasoline production
increased last week, averaging over 9.7 million barrels per day. Distillate fuel production
decreased last week, averaging over 4.7 million barrels per day.
U.S. crude oil imports averaged 8.2 million barrels per day last week, up by 247,000
barrels per day from the previous week. Over the last four weeks, crude oil imports
averaged 7.8 million barrels per day, 2.1% above the same four-week period last year.
Total motor gasoline imports (including both finished gasoline and gasoline blending
components) last week averaged 791,000 barrels per day. Distillate fuel imports averaged
90,000 barrels per day last week.
U.S. commercial crude oil inventories (excluding those in the Strategic Petroleum
Reserve) increased by 2.1 million barrels from the previous week. At 538.6 million
barrels, U.S. crude oil inventories are at historically high levels for this time of year.
Total motor gasoline inventories decreased by 0.1 million barrels last week, but are well
above the upper limit of the average range. Finished gasoline inventories increased while
blending components inventories decreased last week. Distillate fuel inventories
decreased by 3.6 million barrels last week but are well above the upper limit of the
average range for this time of year. Propane/propylene inventories rose 1.2 million
barrels last week and are above the upper limit of the average range. Total commercial
petroleum inventories decreased by 0.4 million barrels last week.
That is why I sometimes reply to a positive post just to move it back up. Also a good reason not to put someone on ignore as you can't see what kind os BS they are doing
Looks like the bird in hand with Kuwaiti cuts means more than some possible future production freeze. Nice to see Whiting up
Doha was was a dream. This is real. Oil workers walked off job when wages were cut due to low oil prices
Ah, just a touch of reality. As long as oil stays cheap there is not an alternative energy product in the world that is economic
If the Saudi royal family thinks they are going to loose control of the country then why not produce all they can get what they can now
On the other side if the Saudi's see a sudden price rise in the works why not grab all the market share they can. The longer the price stays down the larger the disruption in opec countries such as Nigeria, Venezuela even Iraq which is not reimbursing companies for their investment in the oil fields. Mexico's production is falling rapidly, Canada has shut down everything but the tar sands and they are break even at best. North sea is getting zero new investment. Production is crumbling almost everywhere but Saudi Arabia and Iran but then again Iran is in tha tank already and is not growing quickly as most thought it would.
Then consider the big rise in USA oil imports.
Oil is headed back up in a big way and perhaps sooner than most think Doha or no Doha
Not likely. Ryan is going to make the bondholders pay the price. Then every responsible state and local government will see their rates go up. That way every American citizen pays the price for irresponsibility
Rockpile at one point was very profitable. Problem is they ran up too much debt to expand to 4 spreads. Bad move.
IF oil moves up QUICKLY then Rockpile could get spreads back in the field and that is the big thing right now
WTI needs to push up to $55 quickly to save TPLM. A minimum price of $55 would put Rockpile back to work and allow TPLM to frack their wells waiting on completion.
BIG RISK for possible big reward
There are big traffic jams for super tankers both waiting to load and to unload at port. Kind of has the feel that demand for oil is being seriously understated.
"The worst congestion is in the Middle East, as ports struggle to cope with soaring output available for export, and in Asia, where many ports have not been upgraded in time to deal with ravenous demand as consumers take advantage of cheap fuel.
"It's the worst I've seen at Qingdao," said a second tanker captain waiting to offload at the world's seventh busiest port, adding that his crew was killing time doing maintenance work.
Ralph Leszczynski, head of research at shipbroker Banchero Costa, in Singapore, said the snarl-up was "one of the worst tanker traffic jams in recent years."
The cause was "a perfect storm of red-hot demand from new entrant refineries in China and port infrastructure in the Middle East and Latin America that is unable to cope", he said."