• 3 minutes "Biden Is Running U.S. Energy Security Into The Ground" by Irina Slav
  • 6 minutes How Far Have We Really Gotten With Alternative Energy
  • 9 minutes "How to Calculate Your Individual ESG Score to ensure that your Digital ID 'benefits' and money are accessible"
  • 38 mins GREEN NEW DEAL = BLIZZARD OF LIES
  • 9 days 87,000 new IRS agents, higher taxes, and a massive green energy slush fund... "Here Are The Winners And Losers In The 'Inflation Reduction Act'"-ZeroHedge
  • 8 days Energy Armageddon
  • 1 day "Natural Gas Price Fundamental Daily Forecast – Grinding Toward Summer Highs Despite Huge Short Interest" by James Hyerczyk & REUTERS on NatGas
  • 3 days "Forget Oil, The Real Crisis Is Diesel Inventories: The US Has Just 25 Days Left" by Zero Hedge - 5 Stars *****
  • 4 days "The Global Digital ID Prison" by James Corbett of CorbettReport.com
  • 3 days "Europe’s Energy Crisis Has Ended Its Era Of Abundance" by Irina Slav
  • 1 day Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
  • 4 days The Federal Reserve and Money...Aspects which are not widely known
  • 20 hours Is Europe heading for winter of discontent with extensive gas shortages?
  • 5 days Goldman Betting on Cryptocurrencies
  • 8 days Сryptocurrency predictions
  • 13 days Putin and Xi Bet on the Global South
ZeroHedge

ZeroHedge

The leading economics blog online covering financial issues, geopolitics and trading.

More Info

Premium Content

U.S. Crude Inventories Reach Highest Levels Since 1982

EIA Inventory build was double expectations at 8.87 million barrels...

CrudeInventoryChange

With Total Crude Supply at its highest since at least 1982...

DOECrudeOilSupply

* * * Related: OPEC Chief Claims Oil Will Rebound Higher Than In 2008

Remember how exuberant yesterday's small gains in Crude Oil were perceived to be? Yeah - that's all over, with WTI back near a $44 handle - following a large 12.7 million barrel inventory build according to API (EIA reports the 'main event' at 1030ET today - which Saxo Bank warns "a bigger-than-expected build would likely push the market over the cliff edge.") Additional weakness overnight is also likely due to Goldman's shift to a 'sell' for the next 3 months.

CrudeOilContinuousContracts

Goldman Downgrades To "Sell"

We downgrade commodities to Underweight on a 3-month basis and upgrade to Overweight on a 12-month basis. Despite the large declines in commodity prices, we see risks as still skewed to the downside over the near-term. Lower oil prices are also driving cost deflation across the broader commodity complex. And roll yields remain negative for most commodity markets, weighing on returns. We expect WTI oil prices close to $40/bbl for most of 1H 2015, which should slow supply growth and balance the global oil market by 2016. We then expect oil prices to move to the marginal cost of production (US$65 for WTI and US$70 for Brent). This suggests a strong recovery from current prices, but the timing is uncertain and we would wait for signs of stabilization (less inventory build and better roll yields) before shifting to a more positive stance on commodities.

Related: Increasing Demand For Refined Products Will Increase Oil Prices

But, as Bloomberg reports, the market is “waiting on the main event of the day, which is the EIA inventory data,” says Saxo Bank head of commodity strategy Ole Hansen.

“A bigger-than-expected build would likely push the market over the cliff edge, while a not so strong build could be the ammunition the bulls need to trigger some sort of recovery”

“The market is stuck in a tight range, looking for a breakout, but it is unclear in which direction that breakout will be,” says Hansen. “The market is torn between general belief you don’t want to miss the opportunity to buy, while at the same time the fundamentals don’t support the recovery”

* * *

Hope springs eternal though...

CrudeOilContinuousChart2

By Zerohedge

Source - http://www.zerohedge.com/ 

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment

Leave a comment




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News