• 4 minutes Why Trump will win the wall fight
  • 7 minutes Tension On The Edge: Pakistan Urges U.N. To Intervene Over Kashmir Tension With India
  • 12 minutes Maduro Asks OPEC For Help Against U.S. Sanctions
  • 16 minutes Washington Eyes Crackdown On OPEC
  • 9 hours Itt looks like natural gas may be at its lowest price ever.
  • 11 hours Climate Change: A Summer of Storms and Smog Is Coming
  • 4 hours North Korea's Kim To Travel To Vietnam By Train, Summit At Government Guesthouse
  • 11 hours America’s Shale Boom Keeps Rolling Even as Wildcatters Save Cash
  • 1 day AI Will Eliminate Call Center Jobs
  • 1 day Oil imports by countries
  • 14 hours US-backed coup in Venezuela not so smooth
  • 8 hours Amazon’s Exit Could Scare Off Tech Companies From New York
  • 1 day NZ Oil, Gas Ban Could Cost $30 Bln
  • 1 day Indian Oil Signs First Annual Deal For U.S. OilIndian Oil Signs First Annual Deal For U.S. Oil
  • 1 day Solar and Wind Will Not "Save" the Climate
  • 13 hours Some Good News on Climate Change Maybe
  • 16 hours Europe Adds Saudi Arabia to Dirty-Money Blacklist

How Strong Is Bullish Sentiment?

Crude Oil

Friday September 22, 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. Inventories decline in second quarter, but next steps uncertain

(Click to enlarge)

- Global oil inventories declined at a rate of 0.9 million barrels per day in the second quarter, a steep drop after several years of increases.
- Refined product stocks also saw a dramatic decline, evidence that the oil market is moving towards rebalance.
- But the declines could be short-lived – U.S. shale production is rising and seasonal demand is waning.
- Also, as Bloomberg Gadfly notes, OPEC’s data is often unreliable – OPEC producers could be supplying the market with much more oil than they report. Falling production figures are misleading because OPEC’s exports have remained at a much higher level.
- The situation gets worse next year as shale output is expected to continue to grow and OPEC grapples with how to handle its extension.
- The sharp decline in inventories in the second quarter could be a one-off.

2. Frac sand miners hit by sand glut

(Click to enlarge)

- There is a land rush going on in the Permian Basin – for frac sand.
- The WSJ reported that a long…

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