• 1 hour Keystone Pipeline Restart Still Unknown
  • 5 hours UK Offers North Sea Oil Producers Tax Relief To Boost Investment
  • 7 hours Iraq Wants To Build Gas Pipeline To Kuwait In Blow To Shell
  • 9 hours Trader Trafigura Raises Share Of Oil Purchases From State Firms
  • 11 hours German Energy Group Uniper Rejects $9B Finnish Takeover Bid
  • 12 hours Total Could Lose Big If It Pulls Out Of South Pars Deal
  • 14 hours Dakota Watchdog Warns It Could Revoke Keystone XL Approval
  • 1 day Oil Prices Rise After API Reports Major Crude Draw
  • 1 day Citgo President And 5 VPs Arrested On Embezzlement Charges
  • 1 day Gazprom Speaks Out Against OPEC Production Cut Extension
  • 1 day Statoil Looks To Lighter Oil To Boost Profitability
  • 1 day Oil Billionaire Becomes Wind Energy’s Top Influencer
  • 1 day Transneft Warns Urals Oil Quality Reaching Critical Levels
  • 2 days Whitefish Energy Suspends Work In Puerto Rico
  • 2 days U.S. Authorities Arrest Two On Major Energy Corruption Scheme
  • 2 days Thanksgiving Gas Prices At 3-Year High
  • 2 days Iraq’s Giant Majnoon Oilfield Attracts Attention Of Supermajors
  • 2 days South Iraq Oil Exports Close To Record High To Offset Kirkuk Drop
  • 2 days Iraqi Forces Find Mass Graves In Oil Wells Near Kirkuk
  • 2 days Chevron Joint Venture Signs $1.7B Oil, Gas Deal In Nigeria
  • 3 days Iraq Steps In To Offset Falling Venezuela Oil Production
  • 3 days ConocoPhillips Sets Price Ceiling For New Projects
  • 5 days Shell Oil Trading Head Steps Down After 29 Years
  • 5 days Higher Oil Prices Reduce North American Oil Bankruptcies
  • 5 days Statoil To Boost Exploration Drilling Offshore Norway In 2018
  • 5 days $1.6 Billion Canadian-US Hydropower Project Approved
  • 5 days Venezuela Officially In Default
  • 6 days Iran Prepares To Export LNG To Boost Trade Relations
  • 6 days Keystone Pipeline Leaks 5,000 Barrels Into Farmland
  • 6 days Saudi Oil Minister: Markets Will Not Rebalance By March
  • 6 days Obscure Dutch Firm Wins Venezuelan Oil Block As Debt Tensions Mount
  • 6 days Rosneft Announces Completion Of World’s Longest Well
  • 6 days Ecuador Won’t Ask Exemption From OPEC Oil Production Cuts
  • 6 days Norway’s $1 Trillion Wealth Fund Proposes To Ditch Oil Stocks
  • 7 days Ecuador Seeks To Clear Schlumberger Debt By End-November
  • 7 days Santos Admits It Rejected $7.2B Takeover Bid
  • 7 days U.S. Senate Panel Votes To Open Alaskan Refuge To Drilling
  • 7 days Africa’s Richest Woman Fired From Sonangol
  • 7 days Oil And Gas M&A Deal Appetite Highest Since 2013
  • 7 days Russian Hackers Target British Energy Industry

Breaking News:

Keystone Pipeline Restart Still Unknown

Alt Text

The U.S. Export Boom Goes Beyond Crude

While U.S. crude oil exports…

Alt Text

Is U.S. Energy Independence Realistic?

The recent IEA report shocked…

Alt Text

Can The Gas Glut Kill The Permian Boom?

The natural gas glut is…

Oil Hits 11 Year Lows As Glut Worsens

Oil Hits 11 Year Lows As Glut Worsens

Five hundred and twelve years after the birth of Nostradamus, and financial markets remain just as ever hard to predict. The crude complex, however, is somewhat less surprising, heading lower for a seventh consecutive day as oversupply woes weigh heavy (again, again, again).

In terms of overnight economic data flow, Japanese industrial production was in line with consensus at +1.4 percent (YoY) for October, while Indian inflation for November ticked up to +5.41 percent YoY (from 5.0 percent percent in October). Across to Europe, and Eurozone industrial production came in better than expected for October, up 1.9 percent (YoY), versus consensus of 1.3 percent. We’ve nothing-nada-nil of note out in the U.S. today:

Eurozone Industrial Production (source: investing.com)

This week could see all sorts of historic events; not only are we likely to see the lift-off of U.S. interest rate hikes, but we could also see Congress lifting the nation’s 40-year-old ban on oil exports. The deal is expected to be part of legislation passed this week, which is likely to be sweetened by the extension of wind and solar tax credits among other factors. Related: Tesla’s License Plate Mystery Debunked

The latest CFTC data show the elastic band of short positions continuing to get stretched. Speculative short positions increased by 5.8 percent, a new record, while net longs slipped to a five-year low. As the chart below illustrates, while key benchmarks of WTI and Brent remain in the $30s, a number of heavier crudes are already in the roaring twenties:

(Click to enlarge)

In other news, UN-led negotiations in Libya are stalling as an impasse remains in a country which has two rival governments, and two parliaments. Libya relies on oil to meet 96 percent of its income, but as militias control oil fields, pipelines, and export facilities across the country, the oil and gas industry is grinding to a halt. Rival groups initially set out to extort oil revenues from the central government, but as the country remains so inextricably divided, these groups are seem more intent on keeping oil revenues from each other. Related: How Far Will Oil Sink Before Christmas?

Finally, the WSJ ran a piece over the weekend which is near and dear to our hearts here at ClipperData. The headline is: ‘crude moves out to sea as inventories swell‘, and addresses something we’ve been pointing furiously to in recent months – that global inventories are brimming, and that this glut is being pushed out to sea.

After OPEC highlighted last week that OECD oil inventories are 244,000 barrels above their five-year average, the WSJ article points out onshore storage in Western Europe is at 97 percent of capacity, while Saldanha Bay in South Africa – one of the world’s largest oil storage hubs – is already full. All the while, U.S. inventories are at their highest level in more than 80 years. As the below graphic illustrates, stockpiles continue to ramp up:

By Matt Smith

More Top Reads From Oilprice.com:




Back to homepage


Leave a comment

Leave a comment




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