Oil: drops to lowest price since November (2016) as US inventories swell. These are the only two numbers I need to know:My hunch: the IEA will revise its figures before the end of the year, on the bearish side for the price of oil, i.e., the shortfall will be less than 0.5 million bopd, and could disappear altogether.
By the way, the most recent 5-million-bbl increase far outpaced the forecast of about half that amount -- 2.8 million bbls were forecast.
- rebalancing: IEA sees 0.5 million bopd shortfall in oil production by end of 2017
- US reserves: 500 million bbls (increased another 5 million bbls in latest report to 533 million bbls)
The 533 million bbls in US storage does not include the US SPR.
From an earlier post: This is the most recent graphic of Saudi Arabia's cash reserves:
Other Notes With Regard To Increasing Stocks Of Crude Oil
Producers in the United States are partially responsible for the current oversupply in oil. Global supply increased by 260,000 barrels per day in February, to 96.52 million barrels per day, and U.S. production is the highest it has been in a year, at 9.1 million barrels per day, roughly the amount Saudi Arabia produced in February.Which reminds me -- whatever happened to Jane Nielson? From an earlier post:
This still remains one of my favorite posts. Jane Nielson says:My favorite quote in ten years of blogging: "There's some oil to be gotten out of Bakken, and it's going to be exploited, But the 'bonanza' is nothing but hype."
Frequent Internet users are getting emails about the Bakken Formation in North Dakota and Montana, supposedly a great oil bonanza just waiting to be tapped if only nasty enviros would let it happen. The emails and websites say that Bakken would solve all our petroleum “needs.” (What, me worry about global warming?)Don’t believe it. There’s some oil to be gotten out of Bakken, and it’s going to be exploited. But the “bonanza” is nothing but hype.