• 4 minutes Why Trump will win the wall fight
  • 9 minutes Climate Change: A Summer of Storms and Smog Is Coming
  • 12 minutes Maduro Asks OPEC For Help Against U.S. Sanctions
  • 16 minutes Washington Eyes Crackdown On OPEC
  • 9 hours is climate change a hoax? $2 Trillion/year worth of programs intended to be handed out by politicians and bureaucrats?
  • 47 mins Ayn Rand Was Right
  • 28 mins Tension On The Edge: Pakistan Urges U.N. To Intervene Over Kashmir Tension With India
  • 7 hours Sanctions or Support: Despite Sanctions, Iran's Oil Exports Rise In Early 2019
  • 1 hour Solar and Wind Will Not "Save" the Climate
  • 15 mins Indian Oil Signs First Annual Deal For U.S. OilIndian Oil Signs First Annual Deal For U.S. Oil
  • 19 hours Some Good News on Climate Change Maybe
  • 19 hours Expected Breakdown: Israel-Central Europe Summit Canceled After Polish Pullout
  • 11 hours Regular Gas dropped to $2.21 per gallon today

Oil Markets Are Rebalancing At Last

Barrels

Friday September 15, 2017

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. Whiplash for oil investors

(Click to enlarge)

- As refineries started to go offline amid the historic hurricane that hit Texas at the end of August, hedge funds and other money managers scrambled to short WTI, betting that a huge disruption in refining capacity would lead to a buildup in crude supplies.
- They were right: some 4 mb/d of refining capacity was temporarily idled, although that figure is down to less than 2 mb/d at this point.
- In fact, refineries staged a comeback quicker than expected, leading hedge funds and other major investors to rapidly unwind those short bets, swapping them out for long bets, even as the destruction of Harvey was still being tallied.
- The positioning corresponded with a brief decline and then rebound in WTI prices.
- “You can afford, as a speculative investor, to get a little bit more bullish,” Tamar Essner, an energy analyst at Nasdaq Inc., told Bloomberg. “The storm certainly was bearish for WTI, but not for the long term, so why not make a quick buck?”

2. China to phase out internal combustion engine

(Click to enlarge)

- The…

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