• 1 hour Aluminum Is Bouncing Back In China
  • 3 hours The Deep-Sea Mining Debate
  • 19 hours Markets Trending Down Despite Tech Blow-Out
  • 1 day Big Oil Battered On Dismal Earnings
  • 2 days Russian Billionaire Bails On Mid-Sized Gold Miner
  • 2 days Gold Stocks Gear Up For A Big Autumn
  • 3 days America Is Looking To Bring Nuclear Power To Space
  • 3 days What Is Behind Gold's Astonishing Rally?
  • 4 days Stocks Tumble On Brutal Economic Report
  • 4 days Kodak Soars By 400% After Trump Bump
  • 5 days U.S. Coal Production Falls To 42 Year Lows
  • 5 days Indonesia Moves To Bolster Mining Sector
  • 6 days The U.S. Dollar Is Losing Ground As A Reserve Currency
  • 6 days Gold Prices Soar To Record Highs As Dollar Dips
  • 7 days Republicans Unveil Stimulus 2.0
  • 7 days Big Oil Is Back On The M&A Game
  • 8 days Big Banks Want Masks And Lockdown In Second COVID Wave
  • 10 days The Unintended Consequences Of A COVID Stimulus
  • 11 days Tesla Looks To Incentivize Nickel Miners With Massive Contract
  • 11 days Congress Butting Heads Over New Round Of Stimulus Checks
Another Retail Giant Bites The Dust

Another Retail Giant Bites The Dust

Forever 21 filed for Chapter…

How The Ultra-Wealthy Are Using Art To Dodge Taxes

How The Ultra-Wealthy Are Using Art To Dodge Taxes

More freeports open around the…

  1. Home
  2. Markets
  3. Other

Oil Inventory Hits 'Levels Not Seen in 80 Years'; Crude Jumps on News Russia May Cooperate with OPEC

"Levels Not Seen in 80 Years"

The supply glut in oil storage continues. Crude inventories hit new all-time highs this past week.

Weekly Crude Stocks excluding SPR

The above charts from EIA Weekly Supply Data shows the crude inventory of 494,920,000 (not counting strategic reserves) passed the previous high of 490,912,000 set on April 24, 2015.

Reserves, including the Strategic Petroleum Reserve (SPR), reached 1,190,038 barrels, also a record high.


Comments From EIA Weekly Report

Here are some interesting comments from the Weekly EIA Report.

"At 494.9 million barrels, U.S. crude oil inventories remain near levels not seen for this time of year in at least the last 80 years. Total motor gasoline inventories increased by 3.5 million barrels last week, and are well above the upper limit of the average range. Both finished gasoline inventories and blending components inventories increased last week. Distillate fuel inventories decreased by 4.1 million barrels last week but are near the upper limit of the average range for this time of year. Propane/propylene inventories fell 6.2 million barrels last week but are well above the upper limit of the average range. Total commercial petroleum inventories decreased by 1.0 million barrels last week."


Crude Jumps on News Russia May Cooperate with OPEC

Despite the record inventory surge, crude jumped a bit from extremely oversold levels on news Russia Dangles Prospect of OPEC Cooperation.

Oil futures surged on Wednesday, after Russia said it was discussing the possibility of co-operation with OPEC, fanning hopes that a deal was in the works to reduce oversupply that sent prices the lowest levels in a dozen years last week.

Russia's energy ministry said possible coordination with the Organization of the Petroleum Exporting Countries (OPEC) was discussed at a meeting with Russian oil companies on Wednesday.

"I remain skeptical, at the end of the day, about that happening as the oil producers are looking at the other guy to cut production while maintaining their own levels," Andrew Lipow of Lipow Oil Associates said.

Crude was looking firm before the Russia news on the back of a U.S. Energy Department report showing a surprise spike in demand for refined products like heating oil last week, when a massive blizzard hit the U.S. Northeast.

The U.S. Energy Information Administration said inventories of distillates, fell more than 4 million barrels, trumping expectations for a rise of about 2 million.


Economists Surprised Again

Despite the small drawdown in fuel oil please recall the report stated "Distillate fuel inventories are near the upper limit of the average range for this time of year."

Economists can be surprised by anything including the possibility blizzards and cold weather may increase the demand for fuel oil in the Northeast!

 

Back to homepage

Leave a comment

Leave a comment