Keep in mind that this is the time of year when U.S. crude oil inventories MUST BUILD, so that we have enough for the spike in demand that is just ahead.
The U.S. Energy Information Administration (EIA) said in its weekly report that crude oil inventories declined by 1.1 million barrels in the week ended Jan. 19. That was the tenth consecutive weekly drawdown. Supplies at Cushing, Oklahoma, the key delivery point for NYMEX WTI crude, decreased by 3.15 million barrels last week, the EIA said. < This draws the most attention because a drop at Cushing should push WTI toward the Brent price.
Total U.S. crude oil inventories stood at 411.6 million barrels as of last week, which the EIA considered to be in the middle of the average range for this time of year. < Now below the 5-year average.
U.S. crude oil production rose by 128,000 barrels per day (bpd) to 9.87 million bpd, the highest level since the early 1970s and close to the output of top producers Russia and Saudi Arabia.
The report also showed that gasoline inventories increased by 3.1 million barrels, compared to expectations for a gain of 2.4 million barrels. For distillate inventories including diesel, the EIA reported a rise of 0.6 million barrels.
WTI pushed over $65 shortly after the report
Oil prices have risen almost 50% from around $43 a barrel in June, benefiting from production cut efforts led by the OPEC and Russia.
Natural gas prices are also increasing as the national weather service now shows a return of frigid weather to the eastern half of the U.S. in about ten days.
Oil Storage Report - Jan 24
Oil Storage Report - Jan 24
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: Oil Storage Report - Jan 24
This is why I think IEA's forecast of oil demand growth in 2018 being 1.3 MMBbl/day YOY is way too low. My SWAG is that oil demand will increase by AT LEAST 2.0 million barrels per day. Demand for oil is directly tied to GDP growth. - Dan
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JP Morgan's Jamie Dimon predicts President Donald Trump’s sweeping tax cut will enable the economy and American businesses to flourish and U.S. workers will be rewarded with hefty pay hikes. He said the tax cut will drive wages higher and spark an economic boom in this country by boosting job creation.
"I think it's possible you're going to hit 4 percent some time this year," Dimon told CNBC from the World Economic Forum in Davos, Switzerland.
"I promise you, we are going to be sitting here in a year and you all will be worrying about inflation and wages going up too high," he said.
"I can't believe that people think having an uncompetitive tax system is a good thing," he added.
Read more: https://www.newsmax.com/finance/economy ... 05029qo7xd
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JP Morgan's Jamie Dimon predicts President Donald Trump’s sweeping tax cut will enable the economy and American businesses to flourish and U.S. workers will be rewarded with hefty pay hikes. He said the tax cut will drive wages higher and spark an economic boom in this country by boosting job creation.
"I think it's possible you're going to hit 4 percent some time this year," Dimon told CNBC from the World Economic Forum in Davos, Switzerland.
"I promise you, we are going to be sitting here in a year and you all will be worrying about inflation and wages going up too high," he said.
"I can't believe that people think having an uncompetitive tax system is a good thing," he added.
Read more: https://www.newsmax.com/finance/economy ... 05029qo7xd
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group