• 1 hour Dakota Watchdog Warns It Could Revoke Keystone XL Approval
  • 18 hours Oil Prices Rise After API Reports Major Crude Draw
  • 19 hours Citgo President And 5 VPs Arrested On Embezzlement Charges
  • 19 hours Gazprom Speaks Out Against OPEC Production Cut Extension
  • 20 hours Statoil Looks To Lighter Oil To Boost Profitability
  • 21 hours Oil Billionaire Becomes Wind Energy’s Top Influencer
  • 22 hours Transneft Warns Urals Oil Quality Reaching Critical Levels
  • 23 hours Whitefish Energy Suspends Work In Puerto Rico
  • 1 day 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
  • 2 days Iraq Steps In To Offset Falling Venezuela Oil Production
  • 2 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
  • 5 days Iran Prepares To Export LNG To Boost Trade Relations
  • 5 days Keystone Pipeline Leaks 5,000 Barrels Into Farmland
  • 5 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
  • 6 days Ecuador Seeks To Clear Schlumberger Debt By End-November
  • 6 days Santos Admits It Rejected $7.2B Takeover Bid
  • 6 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
  • 7 days Venezuela Signs $3.15B Debt Restructuring Deal With Russia
  • 7 days DOJ: Protestors Interfering With Pipeline Construction Will Be Prosecuted
  • 7 days Lower Oil Prices Benefit European Refiners
  • 7 days World’s Biggest Private Equity Firm Raises $1 Billion To Invest In Oil
  • 8 days Oil Prices Tank After API Reports Strong Build In Crude Inventories
  • 8 days Iraq Oil Revenue Not Enough For Sustainable Development
Alt Text

Is OPEC Deal Compliance About To Crash?

OPEC’s victory lap to celebrate…

Alt Text

Oil Prices Nosedive On Bearish IEA Report

Oil prices are cratering after…

Alt Text

Short Bets On Oil Spike Ahead Of OPEC Meeting

Short positions in Brent futures…

Matt Smith

Matt Smith

Taking a voyage across the world of energy with ClipperData’s Director of Commodity Research. Follow on Twitter @ClipperData, @mattvsmith01

More Info

Oil Erases Gains After Inventory Head-Fake

Oil Barrels

The crude complex is feeling charitable today, giving away most of its overnight gains, as last night's bullish API report head-faked the market. As Nonfarm Friday looms next on the radar, hark, here are five things to consider in oil markets today.

1) In the latest feature on NPR's Texas Standard, we discussed how crude waiting offshore in the US Gulf dropped to its lowest since mid-November last week, amid a lull in arrivals from the Middle East. Crude fell 9 million barrels over a two-day period, before rebounding again over the weekend amid a slew of arrivals from Venezuela. Hark, the interview is here, while the drop - and subsequent rebound - can be seen below:

(Click to enlarge)

2) Mexican crude flows to the U.S. have been gradually dropping in recent years, as the Latin American nation looks to diversify away from its main customer (the U.S.), and also amid an ongoing decline in its domestic production.

However, as Canadian heavy crude imports to the U.S. could drop in the coming weeks amid supply disruptions (due to a fire at an Alberta oil sands plant), Mexican barrels could step up to the plate to fill this potential void. The U.S. is still the destination for about a half of Mexican exports:

(Click to enlarge)

Related: OPEC Deal Extension Looks Shaky As Shale Hedges Production

3) Today's inventory report has been fairly underwhelming for the bulls, in light of yesterday's API report which showed three chunky draws to inventories. Today's build to crude stocks and minor draws to the products is causing a tempering of bullish optimism.

Three months into the OPEC production cut & new patterns are starting to emerge. Find out more about how the markets are rebalancing from Clipperdata's Market Snapshot Report.

Refining activity continues to increase, in line with last year, as we exit from refinery maintenance and look ahead to driving season. The aggregated picture, however, disguises a fairly mottled backdrop on a regional basis in the last week.

While Gulf Coast crude inputs dropped by nearly 200,000 bpd on the week prior, the East Coast saw a strong rebound in activity, albeit from an extremely low level. After crude inputs reached their lowest level since February 2015 in recent weeks, PADD1 runs have rebounded by 167,000 bpd, up to 73.6 percent in terms of the utilization rate, from 60.5 percent last week.

(Click to enlarge) 

4) With U.S. crude grades heading further afield, the below chart is a useful guide to show when U.S. crude has arrived on Chinese shores - and what grade. As the trend of reverse-lightering and co-loading continues to grow from U.S. shores, an increasing number of U.S. barrels are set to discharge in China in April and May.

(Click to enlarge) 

5) Finally, this article provides the stat of the day, as waterborne vessels may have to spend an additional $60 billion each year on fuel come 2020, as new emissions rules kick in. Rules have been approved by the International Maritime Organization (IMO) to cut the amount of sulfur in fuel on merchant ships, from 3.5 percent to 0.5 percent, driving up transportation costs.

Only 2.2 percent of the merchant ship fleet will have scrubbers installed by 2020, meaning the rest will have to buy cleaner, more expensive fuel.

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