API Reports Huge Crude Oil Build; WTI Plummets Almost 5% -- October 23, 2018

WTI plunges:

• down almost 5%
• lost over $3/bbl
• now trading barely above $66

API weekly crude oil inventories: huge, huge build.

I started tracking weekly crude oil inventories about two years ago to get "a feel" for this metric. In all that time, I never saw a swing (build or draw) of more than 6 million bbls in one week and that was incredibly rare. There may have been an occasional exception. I've long forgotten. But anyone who follows the weekly number will be / should be stunned. The API reports a huge build of almost 10 million bbls of crude oil. Who saw it coming? Regular readers might have. Remember this graphic? This is from last week. We will see this week's "gasoline demand" tomorrow afternoon. It will do one of two things: it will continue to slide, or it will show a very, very slight increase but it won't be enough to get anyone excited.

Active rig list:

$66.04↓↓↓↓	10/23/2018	10/23/2017	10/23/2016	10/23/2015	10/23/2014
Active Rigs	68	54	34	68	194

Four new permits:

• Operators: CLR (2); Liberty Resources (2)
• Fields: Haystack Butte (McKenzie); Gros Ventre (Burke)
• Comments: Liberty Resources has two new permits in section 23-159-93; and, CLR has two new Palmer Federal permits in Haystack Butte in section 25-149-98.

Six permits renewed:

• Hunt (3): two Trulson permits in Mountrail County and one Halliday permit in Dunn County
• Zavanna (2): two George permits in Williams County
• Bruin E&P: one Borrud permit in Williams County

Five producing wells (DUCs) reported as completed:

• 33737, 2,026, Hess, BB-Federal B-151-95-2122H-8, Blue Buttes, t9/18; cum --
• 34217, 1,052, Hess, RS-Howell-LW-156-91-1107H-4, Ross, t9/18; cum --
• 34219, 836, Hess, RS-Howell-LW-156-91-1107H-2, Ross, t9/18; cum --
• 34220, 1,256, Hess, RS-Howell-LW-156-91-1107H-1, Ross, t9/18; cum --
• 34218, 679, Hess, RS-Howell-LW-156-91-1107H-3, Ross, t9/18; cum -- 

Note: neighboring well to the new RS-Howell wells is off-line but it's a great well --

• 17720, 399, Hess, RS-Howell-156-91-1207H-1, Ross, t2/09; cum 462K 7/18; it will be interesting to see what this well does when it comes back on line;

Note: #33737 is on a 5-well pad; this one was the first to report; the others are SI/NC, but I believe they have all been fracked; will soon report; #18250 parallels the wells coming from this 5-well pad; still off line;