WTI Flirts With $66 -- January 24, 2018

A reader sent me this, from the EIA:

U.S. crude inventories fell by 1.1 million barrels last week, short of expectations, but the 10-week streak of declines represents a record, according to U.S. Energy Information Administration data going back to 1982. At 411.6 million barrels, stocks are at their lowest since February 2015. [EIA/S] 

I replied, not ready for prime time:

And still not even close to the 10-year median (and the 10-year median would have been even lower had it not been for the Saudi surge in production, 2014 - 2016).

We're a long way from balancing -- my calculations suggest 20 weeks before we're balanced; no change from last week.

In addition, as the price for crude rises, there is a risk Russia and Saudi will start raising production (Saudi will use the excuse they don't want to upset the "synchronized global economy" with expensive gasoline which could cause problems for the economies of China and the US).

With a drawdown only 1.1 million bbls, and "short of expectations," my first thought -- but I decided not to post it on the blog (earlier) -- was this the the low point on drawdowns from here on out?

All I know is I'm glad we have graphics and not just words.

The good news is that this data or something else drove oil to almost $66 today.