kochevnik wrote:Considering all the foolishness on this site lately, I thought there would be a lot more comment about one of the most significant news events in the last few months. I'm speaking of course about the Joint Oil Data Initiative (JODI) announced yesterday.
OilsNotWell wrote:Well, I haven't seen the link to the site which went live yesterday posted yet so here it is: linkI am perusing the production figures right now...perhaps others can do the same.
OPEC Oil Exports Fall 2% as Saudi Shipments Decline
By Wael Mahdi / Bloomberg / Feb 19, 2011
Total world output fell 14 percent in December from a month earlier to 55.5 million barrels a day, the lowest since 2002, mainly due to a in non-OPEC production, particularly in Latin America.
NOTES ON STOCKS DATA
JODI News Letter
Why are data on stocks important ?
Oil stocks are a critical element of information in an oil balance. The majority of oil stocks are essential to keep the global supply system operating. They are oil in pipelines going from the wellhead production sites to refineries, from refineries to consumers; they are held in tankers, railcars and road tankers linking production sites, refineries and consumers.
Not to include stock data in an oil balance leads to a lack of transparency in the market. The trend in stocks is important for many oil analysts when making an evaluation of the oil market situation.
Stocks are a leading indicator of prices: the level of oil stocks often determines the price, e.g. when oil stocks are low it means that there may be a shortage or a need for replenishing, which indicates that prices will be rising. On the other hand if the industry is amply supplied with the right oil, there may be a price reduction expected. This is why it is important to have information on the situation of oil stocks in the world.
Information on product stocks can be as important as crude oil stocks. For example, crude oil stocks give an indication of the availability of crude to refineries in each country, and therefore are evidence on how well the refineries might provide the domestic market. On the other hand, information on low gasoline stocks before the driving season, or low heating oil stocks before the winter can be a warning signal to refineries, oil companies and governments that not only prices could rise, but shortages might possibly occur – e.g. heating oil problems experienced in autumn 2000.
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