Thursday, December 6, 2018

Huge US Crude Oil Draw But WTI Tanks; News Out Of OPEC Not Good -- December 6, 2018

Weekly US petroleum report, link here:
  • wow, wow, wow -- API and EIA certainly don't agree on this data point -- US crude oil inventories
  • EIA; US crude oil inventories declined by a whopping 7.3 million bbls
  • US crude oil inventory now at 443.2 million bbls; at 6%, down from 7%, above the five-year average
  • refineries working at 95.5% of their capacity; sort of a middling number
  • gasoline production responding to gasoline demand: below 10 million bpd
  • distillate production responding to global warming: well over 5 million bpd (at 5.6 million bpd)
  • remember all that talk about increasing imports -- not so fast -- most recent data, US crude oil imports were down by almost one million bbls per day (actual, 943,000 bpd)
  • total distillate fuel supplied was 4.1 million bbls, up 5% from year ago
  • jet fuel up again; up almost 4% from a year ago
Week
Date
Change w-o-w
In Storage
Week 0
Nov 21, 2018
4.9
446.9
Week 1
November 28, 2018
3.6
450.5
Week 2
December 6, 2018
-7.3
443.2

WTI: "tanks" despite large US draw
  • WTI sinks almost 4%; down $1.86 / bbl; trading right at $51
  • obviously, as posted just moments ago, the news coming out of OPEC is not good for oil bulls
  • will OPEC get it right this time around; can US shale operators handle a second round?
  • Canada in deep trouble; a lot of social programs to pay for
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A Seafood Luncheon

Conch and octopus. Neither has any taste -- it's all about the condiments, salad, tempura, etc. Both are over-rated. Either that or I haven't found the best recipe yet.



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