728x90 AdSpace

Latest News
February 19, 2015

U.S. Oil Inventory and Production at New Record High

By Tyler Durden at ZeroHedge 
Between European uncertainty and last night's massive API inventory build (14.3mm barrels), Brent and WTI crude was sliding into today's inventory data - well off the kneejerk highs at the US equity open (and back under $50). Market participants expected a US crude inventory build of around 3 million barrels but the number more than doubled that at 7.72 million barrels and production soared to new record highs.
  • *CRUDE OIL INVENTORIES ROSE 7.72 MLN BARRELS, EIA SAYS
  • *U.S. CRUDE OUTPUT ROSE 0.585% TO 9.280 MLN B/D, EIA SAYS
Idiot algos kneejerked higher (because 7.72 is lower than 14.3?) but that insanity is fading fast...

This is the 6th week in a row of inventory build...

Record high crude inventories

For those banking on production slowing and inventories being drawn down at some point, we suggest you look away... Crude inventories in the last 6 weeks have risen at the fastest pace in 14 years and 2nd fastest pace in history...
Production surged to record highs...
It seems WTI is sitting at a crucial support level...
This will do nothing to help the WTI-Brent spread which has soared to almost $10 (as the refinery strike and storage capacity limits in the US contest with Libya disruptions across the pond).
Charts: Bloomberg
Courtesy Tyler Durden, founder of ZeorHedge (EconMatters author archive here

The views and opinions expressed herein are the author's own, and do not necessarily reflect those of EconMatters.

© EconMatters All Rights Reserved | Facebook | Twitter | Email Subscribe | Kindle

  • Blogger Comments
  • Facebook Comments
Item Reviewed: U.S. Oil Inventory and Production at New Record High Rating: 5 Reviewed By: Econ Matters