Link here.
Weekly EIA petroleum report:
- US crude oil inventories dropped by a whopping 9.9 million bbls;
- US crude oil in storage now stands at 476.7 million bbls, about 5% above the five-year average for this time of the year;
- US crude oil imports little unchanged; about 5.1 million bbls per day last week, decreasing by 1.0 million bpd from the previous week
- refiners are operating at a pretty decent (considering all the headwinds) 81.7% capacity;
- distillate fuel inventories decreased by 0.8 million bbls; about 8% above their five-year average;
- jet fuel supplied was down 28.2% compared with same four-week period last year;
Despite the good numbers, WTI is flat, trading at $52.79. [Later: see first comment. This statement not needed. LOL.]
-Exports were 7 million barrels of crude and product last week.
ReplyDelete-Propane stocks down by 2.2 million barrels.
-Gasoline stocks up by 2.5 million barrels.
-Kerosene stocks up by 1.1 million barrels
-Distillate stocks down by 0.9 million barrels.
I see a balanced inventory report looking at crude and product, thus no spike in crude price.
Actually, I don't think inventory data even matters any more, just as unemployment numbers don't matter. I've tracked these numbers for several years, and if there's any correlation between the weekly reports and the weekly price, it's not very obvious.
ReplyDeleteI was quite wrong with that last line, "despite the good numbers, WTI is flat ....."
It seems less and less, data matters. If any doubt, check GME (GameStop) today.
Before Fed's Powell spoke, the Dow was improving, only down 350 points and trending better. After he spoke, the Dow dropped precipitously, Dow down almost 600 points and trending worse. He's obviously watching the same movie I'm watching: the Covid "thing" is not going to go away any time soon.
a few years back, the weekly EIA data would always move oil prices, even if it was a percentage point off of expectations...now WTI is being moved by the daily fluctuations in the value of the dollar, with moves in oil consistently larger than the change in the dollar's value could ever account for...odd that oil prices latched on to something external, having nothing to do with fundamentals...but i've seen markets do that kind of thing before...i recall one period years ago, maybe even before your time, when the DJIA would move in lockstep with the money supply numbers published by the Fed, which were always reported on the front page ...now i haven't even seen a money supply number in how long? 30 or 40 years? and what was the connection back then if it doesn't connect now?
ReplyDeleteSorry for the delay in replying.
DeleteThis was certainly an anomaly but it just shows how crazy everything has become:
A perfect storm of weak demand, unbridled production by warring producers, and an exhaustion of storage capacity drove West Texas Intermediate crude to a negative price for the first time in history, closing at -$37.63/bbl.Apr 20, 2020