• 2 minutes Oil Price Could Fall To $30 If Global Deal Not Extended
  • 5 minutes Middle East on brink: Oil tankers attacked off Oman
  • 8 minutes CNN:America's oil boom will break more records this year. OPEC is stuck in retreat
  • 4 hours Emissions Need To Be Halved To Avoid 3C Warming
  • 7 mins Iran downs US drone. No military response . . Just Destroy their Economy Completely. Can Senator Kerry be tried for aiding enemy ?
  • 2 hours The Pope: "Climate change ... doomsday predictions can no longer be met with irony or disdain."
  • 2 hours Here We Go: New York Lawmakers Pass Aggressive Law To Fight Climate Change
  • 7 hours Coal Boom in Asia is Real and a Long Trend
  • 3 hours Summit in Pyongyang: China's Xi Says World Hopes North Korea-U.S. Talks Can Succeed
  • 4 hours Pioneer CEO Said U.S. Oil Production would be up to 15 mm bbls/day NOW if we had the pipelines. Permian pipelines STARTING Q3
  • 13 hours Solar Panels at 26 cents per watt
  • 6 hours Huge UK Gas Discovery
  • 18 hours The Magic and Wonders of US Shale Supply: Keeping energy price shock minimised: US oil supply keeping lid on prices despite global risks: IEA chief
  • 18 hours Magic of Shale: EXPORTS!! Crude Exporters Navigate Gulf Coast Terminal Constraints
  • 18 hours US to become net oil exporter in November: EIA
  • 17 hours Ireland To Ban New Petrol And Diesel Vehicles From 2030
  • 15 hours US Shale Drilling lacks regulatory body.
Alt Text

Have Canadian Oil Prices Hit The Sweet Spot?

Canadian oil prices have recovered…

Alt Text

The Oil Price Risk Analysts Are Ignoring

While geopolitical tensions in the…

Alt Text

Oil Resilient Despite Trade Talk Failure

Oil prices fell and quickly…

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

Trending Discussions

Oil Erases Gains After Inventory Head-Fake

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:




Download The Free Oilprice App Today

Back to homepage

Trending Discussions


Leave a comment

Leave a comment





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