Crude oil inventory levels

[dan_s]

If you are concerned about high U.S. crude oil inventory levels, you need to read this:

http://seekingalpha.com/article/3520066 ... fp=0&app=1

[dan_s]

"Using weekly data provided by the EIA, we can see that U.S. oil production levels are now down 493 thousand barrels per day from their peak. This translates to a drop of 3.451 million barrels per week and 179.95 million barrels per year if things remain unchanged. However, since nine of the past 10 weeks have shown a falloff in production, averaging 48.7 thousand barrels per day, it's likely that the overall trend of falling production will continue. If this does happen to be the case, it's not inconceivable to see production drop by another 779.2 thousand barrels per day by the end of the year, bringing total production down to 8.338 million barrels per day. This alone would amount to 1.272 million barrels per day less than our peak and would account for the bulk of the global oil surplus that's being produced." - Cut from article below

http://seekingalpha.com/article/3521816 ... fp=0&app=1

I have been telling EPG members for months that I expect to see a sharp decline in U.S. oil production during the 4th quarter, at least 500,000 barrels per day.

At the current rate of decline, the United States will be importing more oil than it produces by mid-2016.