WTI Crude

Loading...

Brent Crude

Loading...

Natural Gas

Loading...

Gasoline

Loading...

Heating Oil

Loading...

Rotate device for more commodity prices

Alt Text

Iraq Sees No Need For Further OPEC Oil Output Cuts

As OPEC and non-OPEC producers…

Alt Text

The Frac Sand Industry Has A Big Problem

The frac sand business is…

Alt Text

The U.S. Oil Patch Has A Serious Cybersecurity Problem

Cybersecurity heavyweight Symantec has reported…

Is The Market Running Out Of Patience With OPEC?

Oil and Gas

Just as we warned yesterday following the EIA inventory and production data release, the exuberance over the crude draw was misplaced (due to the surge in product builds and almost unprecedented refining activity along with continued resurgent oil production). Saudi imports continue to show no sign of the OPEC cuts and as one analyst noted, "the market looks like it wants to turn lower, maybe it has run out patience waiting for OPEC"

As a reminder, U.S. crude inventories declined 3.6m bbl Wednesday, but gasoline, distillate stockpiles grew by a combined 6m bbl, and U.S. production also grew for the 10th week.

As Bloomberg reports, WTI, Brent deepen declines and erase Wednesday’s post-EIA rally as market’s focus switches to big builds in gasoline and distillate inventories, rather than the crude draw.

The gasoline numbers took the edge off the headline,” in EIA data Wednesday, says Jasper Lawler, senior market analyst at London Capital Group. "In the last couple of days, we’ve had two afternoon attempts to reverse the downtrend and both have heavily been sold into."

"The market looks like it wants to turn lower, maybe it has run out patience waiting for OPEC"
The result is clear...

(Click to enlarge)

In context, this is a major problem for OPEC hopers...

(Click to enlarge)

Energy ministers from Saudi Arabia and Venezuela plan to meet with Russian officials to discuss the extension of the production cut agreement - we suspect it will be too little, too late; OPEC has lost the confidence of its hedge-fund-reinforcing backstop.

By Zerohedge.com

More Top Reads From Oilprice.com:




Back to homepage


Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News