• 3 minutes THE GREAT OIL PRICE PREDICTION CHALLENGE OF 2018
  • 7 minutes Big Oil Costs Can't Go Much Lower
  • 12 minutes China’s Oil Futures Contract Is Beginning to Show Its Teeth
  • 47 mins Famous Musk's Tweet Puts Tesla Under Criminal Investigation
  • 47 mins China Tariff Threatens U.S. LNG Boom
  • 4 hours Blackouts in Australia
  • 10 hours Global Hunger Continues to Grow Driven By Climate Change
  • 8 hours Is your name Philip? No? Too bad!
  • 20 hours The moves toward 'zero-manning' in oil & gas
  • 28 mins Regime For Regime: China Says Willing To Provide Venezuela With What Help It Can
  • 1 day Funding Secured: Saudi Wealth Fund to Invest $1 Billion in Tesla's RIval Lucid to build its EV factory
  • 1 day 100% Renewables will Fuel the Growth of Poverty and Homelessness
  • 22 hours Jan's Electric bike replaces electric cars
  • 5 hours WTI now at $70+ headed for $50s
  • 20 hours Permian already crested the productivity bell curve - downward now to Tier 2 geological locations
  • 21 hours Making Safe Nuclear Power from Thorium

Breaking News:

Putin Gives Chechnya An Oil Company

Alt Text

Rising Costs Weigh On Permian Gas Production

Permian gas growth is slowing…

Alt Text

The End Of The Oil Price Rally

Oil prices look set to…

Editorial Dept

Editorial Dept

More Info

Trending Discussions

Oil Spikes On Supply Disruptions

Pipeline

Friday June 29, 2018

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.

Key Takeaways

- The massive decline in crude stocks added momentum to the price rally this week. The drawdown helped fuel speculation of a supply shortage.
- The surge in refinery runs helps explain some of the crude draw. But the modest uptick in gasoline inventories was a bullish sign, as it failed to offset the decline in crude stocks.
- The spike in crude exports also explains the crude stock draw. The WTI-Brent discount, which had widened to double-digits in recent weeks, meant that U.S. exports would likely rise. That has now finally showed up in the data. However, exports at such levels could be brief since the WTI discount shrank significantly over the past week.

1. Futures curve is the key

(Click to enlarge)

- The shape of the futures curve has historically provided some clues into where oil prices are heading.
- WTI in a state of backwardation tends to precede oil price rallies. Backwardation, in which front-month oil contracts trade at a premium to longer-dated futures, is a sign of tightness in the market. One way of interpreting those differentials is that the market is concerned about near-term supply.

To read the full article

Please sign up and become a premium OilPrice.com member to gain access to read the full article.

RegisterLogin

Trending Discussions





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