Exploring Hydrocarbon Depletion
Crude inventories fell by 884,000 barrels in the week to Feb. 17 to 512.7 million, compared with analysts' expectations for an increase of 3.5 million barrels, data from industry group the American Petroleum Institute showed on Wednesday.
Crude stocks at the Cushing, Oklahoma, delivery hub were down by 1.7 million barrels and U.S. crude imports fell last week by 1.5 million barrels per day (bpd) to 7.398 million bpd, according to the API.
Subjectivist wrote:I just don't get the way the oil market works. The EIA report today shows a drop in over all inventory drop and a big gasolinestockpile draw, but the price dropped like a rock for some reason I can't figure out.
I just don't get the way the oil market works. The EIA report today shows a drop in over all inventory drop and a big gasolinestockpile draw, but the price dropped like a rock for some reason I can't figure out.
Oil fell Wednesday after U.S. government data showed another build of 8.2 million barrels, and U.S. production continued to creep higher to 9.1 million barrels a day.
"We aren't really planning for an oil price much different than this," said Al Walker, CEO of Anadarko Petroleum, attending the annual CERAWeek by IHS Markit conference in Houston. He said he has been expecting volatility and has not been planning for a much higher price. West Texas fell to just above $50 per barrel and Brent was about $53 per barrel Wednesday.
Walker's comments echoed those of other chief executives at the conference, including ConocoPhillips CEO Ryan Lance who discussed keeping costs down amid expectations for a low price environment. BP Group Chief Executive Robert Dudley said he's planning for "lower for longer prices" in the $55 to $60 per barrel range for the next five years. Dudley said he does not see the price dropping much lower than current levels, and he said Tuesday that he expects the agreement between OPEC and non OPEC producers to help support prices.
You and sub are trying to relate how many apples are hanging in the trees in an orchard to the price of oranges at you grocery store. LOL
Doc - "What is happening in the current market (i.e. builds in inventories, increased production in the US, wars in producing nations etc) is the main contributor to the view that market analysts take for the future price of oil." OK then: please explain how the inventory change sub mentioned affected the price physical oil sells for this week. Understand that's the current conversation. Or, if I misunderstood sub: how is the inventory change this week going to effect the closing price of future contracts bought this week.
Users browsing this forum: No registered users and 8 guests