CRUDE OIL INVENTORY/’000 bbls (Week Ended 5/1/15)
Current: 487,030
Actual Build/(Withdrawal): (3,882)
Economist Average Estimate: 1,067
Previous: 490,912
We should see steady decline in storage now that refiners are ramping up production of summer grade transportation fuels. In addition to higher demand for fuels just ahead, refiners cannot blend as much NGLs with crude for the summer blends of gasoline.
Crude Oil Storage Report - May 6
Crude Oil Storage Report - May 6
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: Crude Oil Storage Report - May 6
After 17 straight weeks of builds, Cushing sees a draw on crude inventories
Global oversupply has prompted companies to sell production volumes on the future strip prices, pushing their production into storage hubs like Cushing, Oklahoma. Since the beginning of the year, the U.S. Department of Energy (DOE) reported massive crude oil inventory builds for 17 straight weeks, with inventory numbers blowing past the five-year average.
Today, the DOE released the official stats on crude oil inventories, showing the first draw on crude oil storage so far this year. According to the crude oil inventories numbers for the week ended May 1, 2015, there was a draw of 3,882 MBO, lowering total inventories to 487,030 MBO.
The draw on inventories contributed to prices for West Texas Intermediate (WTI) breaking through the $60 barrier yesterday, giving some hope that prices may be coming back up from their bottom in the low $40 per barrel range. “$60 per barrel was not that large of a barrier, but there was still resistance,” says Jason Constas, managing director at Scottsdale Capital Consulting. “The fact that oil broke above that level should mean it will reach $80 per barrel.”
Full article: http://www.oilandgas360.com/crude-price ... e-26401157
Global oversupply has prompted companies to sell production volumes on the future strip prices, pushing their production into storage hubs like Cushing, Oklahoma. Since the beginning of the year, the U.S. Department of Energy (DOE) reported massive crude oil inventory builds for 17 straight weeks, with inventory numbers blowing past the five-year average.
Today, the DOE released the official stats on crude oil inventories, showing the first draw on crude oil storage so far this year. According to the crude oil inventories numbers for the week ended May 1, 2015, there was a draw of 3,882 MBO, lowering total inventories to 487,030 MBO.
The draw on inventories contributed to prices for West Texas Intermediate (WTI) breaking through the $60 barrier yesterday, giving some hope that prices may be coming back up from their bottom in the low $40 per barrel range. “$60 per barrel was not that large of a barrier, but there was still resistance,” says Jason Constas, managing director at Scottsdale Capital Consulting. “The fact that oil broke above that level should mean it will reach $80 per barrel.”
Full article: http://www.oilandgas360.com/crude-price ... e-26401157
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group