US Crude Oil: Weeks To Re-Balance -- August 2, 2017

US crude oil reserves fell less than expected in latest report. This link will download a PDF on your screen: go.usa.gov/xRPEP  .

Weeks to re-balance: 39 weeks (up from 38 weeks following previous report):

Week	Date	Drawdown	Storage	Weeks to RB
Week 0	Apr 26, 2017		529.0	180
Week 1	May 3, 2017	0.9	528.0	198
Week 2	May 10, 2017	6	522.0	50
Week 3	May 17, 2017	1.8	520.2	59
Week 4	May 24, 2017	4.4	515.8	51
Week 5	May 31, 2017	6.4	509.9	41
Week 6	June 7, 2017	-3.3	513.2	60
Week 7	June 14, 2017	1.7	511.5	57
Week 8	June 21, 2017	2.5	509.0	62
Week 9	June 28, 2017	-0.2	509.2	71
Week 10	July 6, 2017	6.3	502.9	58
Week 11	July 12, 2017	7.6	495.3	47
Week 12	July 19, 2017	4.7	490.6	43
Week 13	July 26, 2017	7.2	483.4	38
Week 14	August 2, 2017	1.5	481.9	39

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The Myth Persists

A reader sent me the link to this CNBC article: OPEC wants oil above $50, but US shale producers won't play along.

I replied:

Saudi Arabia is doing a great job in perpetuating this myth, that ND and TX won't play along.

In fact, as I posted on the blog earlier this week, total OPEC production has hit new records (mostly due to Iraq).

Saudi Arabia has a problem; it's not ND, TX. Saudi Arabia's problem is Iraq, Iran, and Libya.

I assume it was Saudi money that was behind all the efforts to kill shale crude oil pipelines and all the anti-fracking activity. Not all Saudi money but a huge portion of it.

Later: the reader reminds me that Putin was also involved in the US anti-fracking, anti-pipeline movement.