Huge Drop In US Crude Oil Inventories; Re-Balancing Drops To 41 Weeks; WTI Slips Below $50 -- October 3, 2017

Updates

Later, 11:21 p.m. Central Time: wow, that was fast. Just minutes after posting the original post in which I noted that WTI was flirting with $50 again, I re-checked the site and see that WTI has now slipped below $50:

 

Original Post

 

US crude oil inventories: the original estimates were way off (posted last night). The EIA weekly petroleum report (a dynamic link) shows that there was a significant decline in US crude oil inventories: declining by 6.0 million bbls. The number of weeks to "re-balance" decreased from 46 weeks to 41 weeks with that data:

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	47
Week 15	August 9, 2017	6.5	475.4	35
Week 16	August 16, 2017	8.9	466.5	30
Week 17	August 23, 2017	3.3	463.2	29
Week 18	August 30, 2017	5.4	457.8	27
Week 19	September 7, 2017	-4.6	462.4	32
Week 20	September 13, 2017	-5.9	468.2	39
Week 21	September 20, 2017	-4.6	472.8	46
Week 22	September 27, 2017	1.8	471.0	46
Week 23	October 4, 2017	6.0	465.0	41

Futures: futures don't mean squat but it is interesting that WTI right now is flirting with $50 again. Right now, this dynamic link shows that WTI is down 0.7% (36 cents) and trading at $50.06. It's very possible WTI could drop below $50 tomorrow.

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A Man And His Dream

The trusses were put in place yesterday; and today the roof was entirely enclosed. My son-in-law built a "sled" of sorts, leaning against the building, and then brought the 4x8 plywood sheets up to the roof. Shingles and the building will be protected from the elements.