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Posts tagged “oil inventories”

By Robert Rapier on Jul 2, 2015 with 6 responses

Remember When We Were Running Out of Crude Oil Storage?

Given the amount of air time the crude oil storage situation received back in March and April, this might be a good time to revisit that situation. If you recall, there was a great amount of hand-wringing regarding the crude oil storage picture in the U.S. Inventories were high and they were continuing to rise. There were a great many articles like this one, which assured us the situation was dire: US running out of room to store oil; price collapse next?

“The U.S. has so much crude that it is running out of places to put it, and that could drive oil and gasoline prices even lower in the coming months. For the past seven weeks, the United States has been producing and importing an average of 1 million more barrels of oil every day than it is consuming. That extra crude is flowing into storage tanks, especially at the country’s main trading hub in Cushing, Oklahoma, pushing U.S. supplies to their highest point in at least 80 years, the Energy Department reported last week.”

Speculators began to bet that the price of oil was going to crash. Typical was this one at Seeking Alpha: Why Crude Oil Prices Will Have To Fall Hard. CONTINUE»

By Robert Rapier on Jan 27, 2009 with 5 responses

Why Gas Prices are Rising Again

Every time gas prices start to go up, my essay “Why Are Gas Prices Rising?” gets a lot of hits from Google searches by people looking for an explanation. Because the supply/demand dynamics have changed, that essay needs dusting off, especially in light of stories like this: Pros puzzled by gas prices Fuel industry pundits have been left scratching their heads at the recent jump in gas prices, which have increased despite plummeting crude prices. “The nationwide average retail price of self-serve regular gasoline seems to be defying gravity this month,” according to American Automobile Association (AAA) Director of Public Relations, Geoff Sundtrom, “as it continued to rise in the face of sharply lower prices for crude oil and wholesale… Continue»

By Robert Rapier on Dec 5, 2008 with no responses

Rank the Top 10 Oil Stories of 2008

As I recover from a backlog of work, one of the stories I plan to write is a post covering the top energy stories of 2008. Around that theme, Platts just put up a request for reader input on the top oil industry stories of 2008. Their poll runs until Christmas: Rank the top 10 oil industry stories of 2008 Below is the way I would rank the Top 10. I had an easy time ranking the top five, but then it was more difficult to sort them out. My top 10 oil industry stories of 2008: Crude prices soar in 1H, WTI tops $147, Brent right behind Prices collapse below $50 in 2H as demand retreats Ethanol’s struggles: VeraSun… Continue»

By Robert Rapier on Jan 29, 2008 with no responses

This Week in Petroleum 1-30-08

Updated Gasoline inventories did in fact edge upward, as gasoline imports were very strong. Had that not been the case, gasoline inventories would have definitely come down, as utilization continues to trend down. In fact, just glancing over the data, more gasoline may have been imported this January than in any other January before. As long as that continues, gasoline prices won’t gain much traction. But European refiners have to take turnarounds as well, so gasoline imports typically fall off in February and March. Here is the summary: Summary of Weekly Petroleum Data for the Week Ending January 25, 2008 U.S. crude oil refinery inputs averaged 14.6 million barrels per day during the week ending January 25,down 302,000 barrels per… Continue»

By Robert Rapier on Jan 24, 2008 with no responses

This Week in Petroleum 1-24-08

Updated: Not too much to get excited about. Those reports of some refineries coming down early for turnarounds due to low margins look to be accurate, given the drop in refinery utilization. That would also explain the rise in crude inventories, but typically you start to see gasoline inventories coming down as the refineries come offline. Gasoline production did fall, as one would expect as turnaround season begins. However, gasoline inventories increased on the back of very strong gasoline import numbers. The highlights: Summary of Weekly Petroleum Data for the Week Ending January 18, 2008 U.S. crude oil refinery inputs averaged 14.9 million barrels per day during the week ending January 18, down 91,000 barrels per day from the previous… Continue»

By Robert Rapier on Jan 16, 2008 with no responses

This Week in Petroleum 1-16-08

With all of the traveling, and then trying to catch up after the holidays, I haven’t had time to do a proper TWIP. Anyway, mostly what we saw for the past month were crude draws, and gasoline inventories climbing back up and getting in pretty good shape prior to spring turnaround season. Part of the draw down in crude was tax-related. Many countries, including the U.S., tax crude inventories at year end. So, there is a bit of a balancing act as refiners try to draw down inventories while still maintaining enough on hand to weather any supply disruptions. This week saw a large gain across the complex, and crude prices are falling as a result. Summary of Weekly Petroleum… Continue»

By Robert Rapier on Dec 12, 2007 with no responses

Rank the Top 10 Oil Stories of 2007

While I intend to write a post covering the top energy stories of 2007, Platts is asking for reader input on the top oil industry stories of 2007: The top 10 oil industry stories of 2007 A lot of the listed stories would make both lists. I list my Top 10 below that I submitted to Platts. The first few were easy, but I had a hard time picking between the last three or four. My top 10 oil industry stories of 2007: Oil soars, reaches close to $100 for WTI Spare capacity dwindles, supply/demand balance tightens; Peak Oil theory gets more attention Climate change rapidly moves up the list of the world’s concerns; US Senate votes for mandatory GHG… Continue»

By Robert Rapier on Dec 11, 2007 with no responses

This Week in Petroleum 12-12-07

Updated: You would think if last week’s large inventory drop was due to fog-induced delays, all of that crude would show up this week. Not so, as another drop in crude inventories was recorded: U.S. commercial crude oil inventories (excluding those in the Strategic Petroleum Reserve) dropped by 0.7 million barrels compared to the previous week. At 304.5 million barrels, U.S. crude oil inventories are in the upper half of the average range for this time of year. Total motor gasoline inventories increased by 1.6 million barrels last week, but are near the lower end of the average range. Both finished gasoline inventories and gasoline blending components inventories increased during this period. Distillate fuel inventories decreased by 0.8 million barrels,… Continue»

By Robert Rapier on Dec 4, 2007 with no responses

This Week in Petroleum 12-5-07

Update following the release: Big surprises all around this week: Summary of Weekly Petroleum Data for the Week Ending November 30, 2007 U.S. commercial crude oil inventories (excluding those in the Strategic Petroleum Reserve) dropped by 8.0 million barrels compared to the previous week. At 305.2 million barrels, U.S. crude oil inventories are in the upper half of the average range for this time of year. Total motor gasoline inventories increased by 4.0 million barrels last week, and are below the lower end of the average range. Both finished gasoline inventories and gasoline blending components inventories increased during this period. Distillate fuel inventories increased by 1.4 million barrels, but are in the middle of the average range for this time… Continue»

By Robert Rapier on Nov 30, 2007 with no responses

Beginning of the Correction?

It’s no big secret that I think oil prices ran ahead of themselves in the past couple of months. I don’t think they should have cracked $90 this year (and despite mass amnesia by analysts, as of August 99% were in that camp as well). But today, WTI traded into the $80′s for the first time in over a month. Of course prices may reverse before the close today (especially since it sounds like the Fed may cut interest rates again), or they may reverse next week. But I have a feeling that this is the beginning of the correction I have been expecting (and mentioned in this week’s TWIP). It’s not that I don’t think oil is inherently worth… Continue»