OPEC output down a bit in August
Posted: Wed Sep 02, 2015 12:57 pm
OPEC oil output in August falls from record on Iraq disruption
https://finance.yahoo.com/news/opec-oil ... 00071.html
For over a year we have been told that global oil supply exceeds demand by 1.5 to 2.0 million barrels per day, but no one can tell us where all of this excess oil is being stored. The amount of "Missing Oil" is now over 600 million barrels. Despite today's build in U.S. crude oil storage levels, U.S. oil inventories have declined by 30 million barrels during the last five months.
The U.S. has about half of the world's storage capacity. If our oil inventories are falling, there is no way supply exceeds demand by the amount being reported.
My SWAG is that demand is MUCH HIGHER than what EIA and IEA have been reporting.
China: Oil demand in China may slow, but it is not going down. Only 20% of their total energy supply comes from burning oil. 60% comes from burning coal. China recently opened two new strategic oil storage areas which will add 150,000 to 200,000 barrels per day to their demand. If we were smart, we'd also be building up our strategic petroleum reserves.
Chinese auto sales are down, but the fleet is still growing: http://www.usnews.com/news/business/art ... -in-august
https://finance.yahoo.com/news/opec-oil ... 00071.html
For over a year we have been told that global oil supply exceeds demand by 1.5 to 2.0 million barrels per day, but no one can tell us where all of this excess oil is being stored. The amount of "Missing Oil" is now over 600 million barrels. Despite today's build in U.S. crude oil storage levels, U.S. oil inventories have declined by 30 million barrels during the last five months.
The U.S. has about half of the world's storage capacity. If our oil inventories are falling, there is no way supply exceeds demand by the amount being reported.
My SWAG is that demand is MUCH HIGHER than what EIA and IEA have been reporting.
China: Oil demand in China may slow, but it is not going down. Only 20% of their total energy supply comes from burning oil. 60% comes from burning coal. China recently opened two new strategic oil storage areas which will add 150,000 to 200,000 barrels per day to their demand. If we were smart, we'd also be building up our strategic petroleum reserves.
Chinese auto sales are down, but the fleet is still growing: http://www.usnews.com/news/business/art ... -in-august