• 4 minutes Some Good News on Climate Change Maybe
  • 7 minutes Cuba Charges U.S. Moving Special Forces, Preparing Venezuelan Intervention
  • 12 minutes Washington Eyes Crackdown On OPEC
  • 15 minutes Solar and Wind Will Not "Save" the Climate
  • 2 mins is climate change a hoax? $2 Trillion/year worth of programs intended to be handed out by politicians and bureaucrats?
  • 3 hours Why Trump will win the wall fight
  • 6 hours Prospective Cause of Little Ice Age
  • 5 hours L.A. Mayor Ditches Gas Plant Plans
  • 1 hour students walk out of school in protest of climate change
  • 7 hours *Happy Dance* ... U.S. Shale Oil Slowdown
  • 37 mins Maduro Asks OPEC For Help Against U.S. Sanctions
  • 1 day Ford In Big Trouble: Three Recalls In North America
  • 1 day Why Is Japan Not a Leader in Renewables?
  • 10 hours And for the final post in this series of 3: we’ll have a look at the Decline Rates in the Permian
  • 16 hours IT IS FINISHED. OPEC Victorious
  • 1 day Is the Green race a race from energy dependence.

Bullishness Is Back In The Oil Patch

Shale

Friday July 28, 2016

In the latest edition of the Numbers Report, we’ll take a look at some of the most interesting figures put out this week in the energy sector. Each week we’ll dig into some data and provide a bit of explanation on what drives the numbers.

Let’s take a look.

1. Saudi exports to the U.S. decline

(Click to enlarge)

- Saudi Arabia has decided to cut oil exports to the U.S. in an effort to accelerate the market balancing.
- U.S. imports of Saudi crude used to routinely top 1 million barrels per day, but since June, the weekly figures have dropped sharply.
- The most recent data shows that U.S. imports of Saudi oil dipped to just 524,000 bpd, the lowest level in seven years.
- The idea is to send less oil to the U.S., which will force drawdowns in inventory levels. The weekly inventory figures have been some of the most important metrics that go into gauging the pace of rebalancing.
- There is also a psychological component. Because data elsewhere around the world is not as transparent as the U.S., by specifically targeting U.S. inventories, Saudi Arabia hopes to spark a more bullish sense in the market that rebalancing is underway.

2. Traders more bullish

(Click to enlarge)

- Hedge funds and other money managers staked out one of the most bearish positions on crude in June, a meltdown of sentiment after the late-May OPEC announcement disappointed.
- But…

To read the full article

Please sign up and become a premium OilPrice.com member to gain access to read the full article.

RegisterLogin



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