• 3 minutes "Biden Is Running U.S. Energy Security Into The Ground" by Irina Slav
  • 6 minutes How Far Have We Really Gotten With Alternative Energy
  • 9 minutes "How to Calculate Your Individual ESG Score to ensure that your Digital ID 'benefits' and money are accessible"
  • 1 day GREEN NEW DEAL = BLIZZARD OF LIES
  • 10 days 87,000 new IRS agents, higher taxes, and a massive green energy slush fund... "Here Are The Winners And Losers In The 'Inflation Reduction Act'"-ZeroHedge
  • 6 hours Energy Armageddon
  • 24 hours "Natural Gas Price Fundamental Daily Forecast – Grinding Toward Summer Highs Despite Huge Short Interest" by James Hyerczyk & REUTERS on NatGas
  • 9 hours Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
  • 5 days "The Global Digital ID Prison" by James Corbett of CorbettReport.com
  • 4 days "Forget Oil, The Real Crisis Is Diesel Inventories: The US Has Just 25 Days Left" by Zero Hedge - 5 Stars *****
  • 5 days "Europe’s Energy Crisis Has Ended Its Era Of Abundance" by Irina Slav
  • 5 days The Federal Reserve and Money...Aspects which are not widely known
  • 2 days Is Europe heading for winter of discontent with extensive gas shortages?
  • 6 days Goldman Betting on Cryptocurrencies
  • 9 days Сryptocurrency predictions
  • 14 days Putin and Xi Bet on the Global South
Editorial Dept

Editorial Dept

More Info

Ballooning U.S. Crude Stocks Cap Oil Prices

2019 has been good for oil bulls. Hedge funds largely poured into the long side of the market this year as OPEC+ showed strong discipline in removing barrels from the supply chain and geopolitical disruption festered in Venezuela, Libya and Nigeria. The Trump administration’s surprise decision to end their waiver program for buyers of Iranian oil to drive the country’s exports to zero was supposed to be the bullish nail in the coffin permitting a run to $80 or higher.

Except one pesky data point seems to be preventing that for now- ballooning US crude oil inventories. Last week’s DOE report showed a surprise 9.5m bbl w/w increase in US crude stocks driven by elevated imports, surging US crude production and extremely weak refiner run levels. We were admittedly on the bullish train last week following the Iran waiver news from the White House, but it seems the longs will have to wait for some fundamental confirmation before the market can extend its winning streak.

The market is correct to pause at current levels before another surge higher because the fundamental situation in the US isn’t pretty. US crude oil stocks are higher y/y/ by more than 7% while refiner demand is lower by about 500k bpd. The high supply / low demand regime has Days of Cover for US crude stocks at 28.9 versus 26.0 in early May of 2018.

The situation is further complicated by the continued presence of Iranian tankers across the Middle East and in East Asia. Bloomberg’s…




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News