• 3 days Retail On Pace For Most Bankruptcies And Store Closures Ever In One Year: BDO
  • 10 minutes America Could Go Fully Electric Right Now
  • 5 days Majors Oil COs diversify into Renewables ? What synergies forget have with Solar Panels and Wind Tirbines ? None !
  • 1 min Rethinking election outcomes for oil.
  • 6 hours Clean Energy Is Canceling Gas Plants
  • 2 mins The Leslie Stahl/60 Minutes Interview with President Trump
  • 20 mins China leaders meet to discuss proposed 5 year economic plan.
  • 42 mins The City of Sturgis Update on the Motorcycle Rally held there, and the MSM's reporting hence
  • 1 day GAME CHANGER: MIT Startup Commonwealth Fusion says Commercial Product by early 2030s ! THIS CHANGES EVERYTHING..
  • 17 mins America's Frontline Doctors - Safely Start Living Again!
  • 4 hours Australia’s Commodities Heartland Set for Major Hydrogen Plant
  • 22 hours Video Evidence that the CCP controls Joe Biden
  • 1 day OP article : "Trump blasts Biden Fracking Plan . . . "
  • 44 mins Saudi Oil Minister Abdulaziz said getting rid of oil "Far Fetched and Unrealistic". . True. . . but
  • 8 hours Irina Slav has a good article - Regarding Investors & Oil
  • 32 mins Conoco Pledges ‘Net-Zero’ Emissions in Break With U.S. Rivals
  • 1 day Biden denies fracking ban
  • 2 days Is the coal industry on the way out?
The U.S. Has A Major EV Problem

The U.S. Has A Major EV Problem

Insufficient public charging infrastructure is…

How Hydrogen Will Reshape Global Power Dynamics

How Hydrogen Will Reshape Global Power Dynamics

If hydrogen, as many expect…

ZeroHedge

ZeroHedge

The leading economics blog online covering financial issues, geopolitics and trading.

More Info

Premium Content

Is The Market Running Out Of Patience With OPEC?

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:


Download The Free Oilprice App Today

Back to homepage





Leave a comment

Leave a comment




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