From one of our members:
In case you missed it: Mike caught an astonishing revision in the IEA’s monthly Oil Market Report released on Friday – 2 massive downward inventory revisions for May and June totaling 90 million barrels (1.5mm b/d), which now puts OECD inventories near a multi-decade low.
Of course, the IEA didn’t mention this revision whatsoever, nor have we seen any other analysts make any mention. The implications are meaningful.
While this past week saw Brent crude prices claw back for 7 weeks of consecutive gains – hitting levels not seen since Nov 2022 – and energy equities move significantly higher, it’s very clear that the market and data are telling us something is different.
As Mike asserted this week: "Employing tepid demand figures and a conservatively high non-OPEC supply forecast yields an inventory draw for the remainder of the year. The net will be increased pressure on OPEC’s dwindling spare output capacity and already lean inventories. Most (of the Wall Street Gang) have failed to grasp this issue."
--------------------
Mike is Michael Rothman, President of Cornerstone Analytics
The significants of the note above is that OECD petroleum inventories are already at a level that points to $100/bbl oil prices and they are still falling.
Flash Alert: IEA admits to error in their data - Aug 14
Flash Alert: IEA admits to error in their data - Aug 14
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group