All the talk of an oil "glut" is BS. See chart below. U.S. oil inventories are BELOW last years levels.
http://www.oilandgas360.com/analytics/c ... 5-26406629
Inventories ALWAYS build this time of year because refiners gear up for increasing home heating oil demand. This is just like retailers that build inventories so they have more to sell before Christmas season.
Crude Oil "glut" is BS
Crude Oil "glut" is BS
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: Crude Oil "glut" is BS
I can understand the concern for the first half of 2015, but I just think analysts saying this is a "glut" is a bit of an exaggeration. I get a lot of other analysts opinions on oil prices and none have been as bearish as GS.
Most say Brent will flop around in the $85-$90 range for awhile, until we see if heating oil demand is strong enough to get rid of the "glut". Then it is up to OPEC at their November 27 meeting.
I am optimistic that the global economy is actually better than people think. Low oil prices do stimulate the economy.
None of us know for sure where oil prices are heading, but I do know we are heading for a few months of increased seasonal demand.
Most say Brent will flop around in the $85-$90 range for awhile, until we see if heating oil demand is strong enough to get rid of the "glut". Then it is up to OPEC at their November 27 meeting.
I am optimistic that the global economy is actually better than people think. Low oil prices do stimulate the economy.
None of us know for sure where oil prices are heading, but I do know we are heading for a few months of increased seasonal demand.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: Crude Oil "glut" is BS
isn't it quite the coincidence that gasoline prices (and crude oil prices) are plunging just weeks before the midterm elections..... the PPT at work again? wouldn't be the first time strange things occurred in energy markets shortly before a national election
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prince_jake_33
- Posts: 242
- Joined: Mon Apr 26, 2010 2:21 pm
Re: Crude Oil "glut" is BS
Some information on crude prices and supplies regarding our major exporters
New York/Singapore– Kuwait, Saudi Arabia's traditional Gulf ally, is challenging its bigger neighbour in an increasingly competitive battle for market share as it sells oil to buyers in Asia at the widest discount to a comparable Saudi grade in 10 years.
Kuwait's price cut to Asia, and cuts by other Middle East producers including Saudi Arabia and Iraq, have underscored competition for oil sales to the region as a rout in global benchmarks threatens the national budgets of some OPEC members.
Defending and winning share in Asia's still growing markets has become the primary focus, too, as demand has softened in the United States with rising shale oil output and in Europe with weak economic growth in the eurozone.
"You have the reality of an increasingly crowded market for mid-sour barrels in Asia," said Daniel Sternoff, senior managing director at consultancy Medley Global Advisors.
"I wouldn't say price war, but there are clear signs of more competitive pricing."
Kuwaiti crude in October is already 50 cents a barrel cheaper than Saudi Arabia's official selling price (OSP) for its Arab Medium grade, the widest discount since at least 2004, Reuters data showed.
Iraq, the second largest producer of the Organization of the Petroleum Exporting Countries (OEPC), has also priced its Basra Light crude at the widest discount against Arab Medium in a year, after Asian buyers had steered clear of its flagship grade on fears an Islamist insurgency would disrupt supplies.
Kuwait, Iraq and Iran typically adjust their crude prices using the Saudi OSPs as a guide, but with the world's biggest exporter cutting its prices for a fourth month in a row on Oct. 1, they may struggle to respond to protect market share.
Last week, Saudi Arabia sharply cut its official oil prices for Asian customers in November, in the clearest sign yet that it is competing harder for crude market share.
By the end of this week, Kuwait and Iraq are likely to cut their November prices by at least 70 cents from October, keeping pace with the drop in Arab Medium. That would be their lowest since January 2009, according to Reuters data, although some Asian buyers are calling for a bigger price cut for Kuwaiti oil.
"Kuwaiti crude is always expensive so it should be lower a bit more. Arab Medium minus 60-70 cents is a good price, I think," a trader with a North Asian refiner said.
Iran has set the November OSP for Iranian Light at 82 cents a barrel below Oman/Dubai quotes, the lowest since December 2008.
Kuwait's discount to Arab Medium has doubled from last year after it lost market share to abundant and cheaper supply from Iraq, and as Iran's exports rose after Western sanctions eased, traders said.
Asia's top four crude buyers, China, India, Japan and South Korea, imported just over 1.1 million barrels per day (bpd) of Kuwaiti oil in the first eight months this year, down from close to 1.4 million bpd last year, customs and Reuters data showed.
New York/Singapore– Kuwait, Saudi Arabia's traditional Gulf ally, is challenging its bigger neighbour in an increasingly competitive battle for market share as it sells oil to buyers in Asia at the widest discount to a comparable Saudi grade in 10 years.
Kuwait's price cut to Asia, and cuts by other Middle East producers including Saudi Arabia and Iraq, have underscored competition for oil sales to the region as a rout in global benchmarks threatens the national budgets of some OPEC members.
Defending and winning share in Asia's still growing markets has become the primary focus, too, as demand has softened in the United States with rising shale oil output and in Europe with weak economic growth in the eurozone.
"You have the reality of an increasingly crowded market for mid-sour barrels in Asia," said Daniel Sternoff, senior managing director at consultancy Medley Global Advisors.
"I wouldn't say price war, but there are clear signs of more competitive pricing."
Kuwaiti crude in October is already 50 cents a barrel cheaper than Saudi Arabia's official selling price (OSP) for its Arab Medium grade, the widest discount since at least 2004, Reuters data showed.
Iraq, the second largest producer of the Organization of the Petroleum Exporting Countries (OEPC), has also priced its Basra Light crude at the widest discount against Arab Medium in a year, after Asian buyers had steered clear of its flagship grade on fears an Islamist insurgency would disrupt supplies.
Kuwait, Iraq and Iran typically adjust their crude prices using the Saudi OSPs as a guide, but with the world's biggest exporter cutting its prices for a fourth month in a row on Oct. 1, they may struggle to respond to protect market share.
Last week, Saudi Arabia sharply cut its official oil prices for Asian customers in November, in the clearest sign yet that it is competing harder for crude market share.
By the end of this week, Kuwait and Iraq are likely to cut their November prices by at least 70 cents from October, keeping pace with the drop in Arab Medium. That would be their lowest since January 2009, according to Reuters data, although some Asian buyers are calling for a bigger price cut for Kuwaiti oil.
"Kuwaiti crude is always expensive so it should be lower a bit more. Arab Medium minus 60-70 cents is a good price, I think," a trader with a North Asian refiner said.
Iran has set the November OSP for Iranian Light at 82 cents a barrel below Oman/Dubai quotes, the lowest since December 2008.
Kuwait's discount to Arab Medium has doubled from last year after it lost market share to abundant and cheaper supply from Iraq, and as Iran's exports rose after Western sanctions eased, traders said.
Asia's top four crude buyers, China, India, Japan and South Korea, imported just over 1.1 million barrels per day (bpd) of Kuwaiti oil in the first eight months this year, down from close to 1.4 million bpd last year, customs and Reuters data showed.