• 3 minutes 2nd Annual Great Oil Price Prediction Challenge of 2019
  • 6 minutes "Leaked" request by some Democrats that they were asking Nancy to coordinate censure instead of impeachment.
  • 11 minutes Trump's China Strategy: Death By a Thousand Paper Cuts
  • 14 minutes Democrats through impeachment process helped Trump go out of China deal conundrum. Now Trump can safely postpone deal till after November 2020 elections
  • 1 hour Shale Oil Fiasco
  • 1 hour Everything you think you know about economics is WRONG!
  • 55 mins Wallstreet's "acid test" for Democrat Presidential candidate to receive their financial support . . . Support "Carried Interest"
  • 7 hours USA v China. Which is 'best'?
  • 7 hours Global Debt Worries. How Will This End?
  • 1 day My interview on PDVSA Petrocaribe and corruption
  • 6 hours Judiciary impeachment: Congressman says Sean Misko, Abigail Grace and unnamed 3rd (Ciaramella) need to testify.
  • 2 days Wonders of US Shale: US Shale Benefits: The U.S. leads global petroleum and natural gas production with record growth in 2018
  • 15 hours Quotes from the Widowmaker
  • 1 day Petroleum Industry Domain Names
  • 14 hours Tesla Launches Faster Third Generation Supercharger
  • 7 hours Joe Biden, his son Hunter Biden, Ukraine Oil & Gas exploration company Burisma, and 2020 U.S. election shenanigans
  • 7 hours Winter Storms Hitting Continental US

Oil Inventories Fall, But OPEC’s Problems Persist

Cushing

Friday July 14, 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. Oil inventories decline counter-seasonally

(Click to enlarge)

- As Bloomberg Gadfly points out, the U.S. posted a highly unusual drawdown in crude inventories in the March through June period, with exceptional declines in June.
- The declines rescued oil prices from cratering below $40 per barrel, a rout that began after disappointment of OPEC’s May meeting.
- But inventories are still high and follow a strong build in the first quarter. Also, as Goldman Sachs said in a recent note, the drawdowns are still early.
- Moreover, a lot of the oil has been exported, as U.S. oil exports surge to record highs. As a result, the drawdowns are not clearly a sign of a tightening market, as the crude could simply end up exacerbating supply problems elsewhere.
- Bloomberg Gadly notes: “The U.S. exported 149 million more barrels of crude and refined products in the four months through June than it did in the same period of 2016. Had those barrels not been exported, U.S. inventories would have risen by another 129 million barrels.”

2. Oil inventories coming down…slowly

(Click to enlarge)

-…




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