U.S. oil inventories are too low - Oct 21
Posted: Thu Oct 21, 2021 5:52 pm
Note from OilPrice.com
"Everyone who has been following oil markets during the pandemic knows that WTI crude prices reached negative levels in an unprecedented turn of events in April 2020.
The culprit back then was the overflowing Cushing storage hub. < Cushing, Oklahoma is the largest and most important oil storage hub in America.
In 2021, America’s largest oil storage hub is once again about to play a crucial role in what could be the next major price shock in oil markets.
But this time, the opposite is true. Crude inventories in the crucial oil storage facility are plunging at an alarming rate.
According to JP Morgan, Cushing may just be weeks away from being ‘’effectively out of crude’’
You see, a natural gas crisis in Europe and Asia has already led to a large, and unexpected jump in demand. This in combination with OPEC’s overcompliance to its output cuts has created a very tight oil market
Without additional volumes, JP Morgan expects the Cushing hub to reach critical levels in the next two months, setting crude prices up for a serious spike. < JPM official oil price forecast for Brent is $95/bbl in Q1 2022. I think it goes over $100/bbl soon because OCED inventories appear heading to under 25 Days of Consumption, a low level that has never happened. OECD oil inventories that low will put the global economy at risk. This world still runs on oil.
We have a live EPG webinar tomorrow, October 22 at 10AM CT. You must register on the EPG website to attend the live event.
"Everyone who has been following oil markets during the pandemic knows that WTI crude prices reached negative levels in an unprecedented turn of events in April 2020.
The culprit back then was the overflowing Cushing storage hub. < Cushing, Oklahoma is the largest and most important oil storage hub in America.
In 2021, America’s largest oil storage hub is once again about to play a crucial role in what could be the next major price shock in oil markets.
But this time, the opposite is true. Crude inventories in the crucial oil storage facility are plunging at an alarming rate.
According to JP Morgan, Cushing may just be weeks away from being ‘’effectively out of crude’’
You see, a natural gas crisis in Europe and Asia has already led to a large, and unexpected jump in demand. This in combination with OPEC’s overcompliance to its output cuts has created a very tight oil market
Without additional volumes, JP Morgan expects the Cushing hub to reach critical levels in the next two months, setting crude prices up for a serious spike. < JPM official oil price forecast for Brent is $95/bbl in Q1 2022. I think it goes over $100/bbl soon because OCED inventories appear heading to under 25 Days of Consumption, a low level that has never happened. OECD oil inventories that low will put the global economy at risk. This world still runs on oil.
We have a live EPG webinar tomorrow, October 22 at 10AM CT. You must register on the EPG website to attend the live event.