The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
The American Petroleum Institute reported late Tuesday that U.S. crude supplies rose by 1.7 million barrels for the week ended Feb. 28, according to sources. The API data also reportedly showed gasoline stockpiles fell by 3.9 million barrels, while distillate inventories declined by 1.7 million barrels. Inventory data from the Energy Information Administration will be released Wednesday. The EIA data are expected to show crude inventories rose by 3.5 million barrels last week, according to analysts polled by S&P Global Platts. They also forecast supply declines of 2.8 million barrels for gasoline and 2.4 million barrels for distillates. April West Texas Intermediate crude CLJ20, +0.77% was at $47.12 a barrel in electronic trading, down from its settlement at $47.18 Tuesday on the New York Mercantile Exchange.
Should be a good sign with the declines in Gasoline and Distilates.
Oil up 3.5% and the FTSE over 3% up
A bit of Dulux steri shield wiil go down a treat.
No worries groover. I supply trade paint to contractors etc just outside London. This year has not started well and i am surprised how quiet it is. That said there is plenty of new builds coming out of the ground. The problems seem to be more around maintenance projects.
Around the markets i have been caught out this week, mainly because i have had poor internet combined with no mobile signal all this week (perfect storm). I have to make some serious decisions over the weekend as my CFD's have run away from me, if the markets go further Monday i will cut my losses. Here's hoping someone speaks some calming words over the weekend (as long as it's not Trump!)As i type this there are some decent discussions on Bloomberg.
Personally my fear is not this virus, but what the World will do when we eventually get something really nasty. The media runs the risk of become irrelevant unless it becomes more balanced. As has just been quoted in the US, "switch of the TV for 24 hours"!!
Yeah and wait till the little green men arrive!
Obviously the comment about DBNO only knowing the answer must be who is under all those filtered posts. Only appears when things go bad.
I still don't understand why the Dow climbs twice as fast as the FTSE but the FTSE falls quicker and by a bigger % than the Dow.
The saying America snezzes and we catch a cold seems quite apt.
Oil Prices Bounce Back On Bullish EIA Data
By Irina Slav - Feb 26, 2020, 9:39 AM CST
Crude oil prices inched higher on Wednesday morning after the Energy Information Administration reported an inventory build of 500,000 barrels for the week to February 21. Gasoline stockpiles, however, fell considerably, and so did distillate fuel inventories.
The EIA said that at 443.3 million barrels, crude oil inventories were below the five-year seasonal average.
A day earlier, the American Petroleum Institute reported a smaller than expected inventory build, which helped prices recoup some of their latest losses but wasn’t enough to reverse the decline set off by the latest spike in coronavirus-related fears.
Analysts had expected an inventory build of 2.467 million barrels, after last week the EIA reported a build of 400,000 barrels for the second week of February.
For the third week of February, the EIA also reported a substantial draw in gasoline inventories, after another build, of 2 million barrels for the previous week. Production of gasoline averaged 9.8 million bpd in the week to February 21, compared with 9.5 million bpd a week earlier.
The EIA also said distillate fuel inventories had shed 2.1 million barrels last week, after they posted a decline of 600,000 barrels during the previous week. Production of distillate fuels averaged 4.8 million bpd last week, down from 4.9 million bpd a week earlier.
Oil prices fell to a two-week low yesterday, with West Texas Intermediate slipping below $50 a barrel as the spread of the coronavirus, dubbed Covid-19, outside China sparked a new wave of fears and oil demand concern.
“The spread of the COVID-19 virus continues to dominate market direction, overshadowing all over factors in the current environment,” commodity analyst Robbie Fraser from Schneider Electric said in a note. “Particularly concerning of late is the virus’ spread outside of China, with confirmed cases in several key oil producing states including Oman, as well as a significant number of cases in Iran.”
At the time of writing, WTI was trading at $50.05 a barrel, with Brent crude at $54.05 a barrel, both virtually unchanged from the opening of trade.
By Irina Slav for Oilprice.com
You h ave got to remember, pre 2008 crash the Dow traded double the ftse +give or take 200 points, it's now over 4 times ftse so therefore bigger drops are inevitable. That said today is quite worrying.
| US DoE Crude Oil Inventories (W/W) 14-Feb: 414K (est 3200K; prev 7459K)
- Distillate (W/W): -635K (est -1600K; prev -2013K)
- Cushing (W/W): -133K (prev 1668K)
- Gasoline (W/W): -1971K (est 200K; prev -95K)
- Refinery Utilization (W/W): 1.40% (est -0.65%; prev 0.60%)
That article makes it Clear they have absolutely no idea, things like wind, solar will grow fast.
https://cleantechnica-com.cdn.ampproject.org/v/s/cleantechnica.com/2020/02/18/eia-releases-2050-projections-for-energy-makes-it-clear-that-they-havent-been-paying-attention/amp/?amp_js_v=a3&_gsa=1&usqp=mq331AQCKAE%3D#referrer=https%3A%2F%2Fwww.google.com&_tf=From%20%251%24s&share=https%3A%2F%2Fcleantechnica.com%2F2020%2F02%2F18%2Feia-releases-2050-projections-for-energy-makes-it-clear-that-they-havent-been-paying-attention%2F
NOT sure if this has copied properly, it's an interesting read.
Time flies, it was 145p about 16 months ago, give it a while and we might see that again. Oil was at $80 then.
Oil prices pared some of their earlier gains on Wednesday after weekly data from the Energy Information Administration revealed that U.S. crude supplies rose by 7.5 million barrels for the week ended Feb. 7. Analysts polled by S&P Global Platts forecast a rise of 2.3 million barrels, while the American Petroleum Institute on Tuesday reported a rise of 6 million barrels, according to sources. The EIA data also showed a supply decline of 100,000 barrels for gasoline, while distillate stocks fell by 2 million barrels. The S&P Global Platts survey had shown expectations for an increase of 700,000 barrels for gasoline supplies, but distillates were forecast to fall by 900,000 barrels.
They also imported more oil than exported by 3 million barrels.
Hasn't had a negative affect on oil though, small raise so far, more on the back of more positive news on Coronavirus.
The American Petroleum Institute reported late Tuesday that U.S. crude supplies rose by 6 million barrels for the week ended Feb. 7, according to sources. The API data also reportedly showed a stockpile climb of 1.1 million barrels for gasoline, while distillate stocks fell by 2.3 million barrels. Inventory data from the Energy Information Administration will be released Wednesday. The EIA data are expected to show crude inventories rose by 2.3 million barrels last week, according to analysts polled by S&P Global Platts. They also forecast a supply climb of 700,000 barrels for gasoline, while distillate inventories were expected to decline by 900,000 barrels. March West Texas Intermediate crude CLH20, +0.77% was at $49.98 a barrel
But if the EIA do have to revise their forcasts, this alone could push oil higher. Can't see that happening this side of US. elections. This also makes you wonder why BP decided to pay so much for their buy in to us shale. At the time i felt it was a way of controlling how much shale oil was produced thus keeping oil prices more steady and at a higher price.
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HOMEENERGY
Note to EIA: Major shale operator sending cash elsewhere
By Kurt Cobb, originally published by Resource Insights
February 9, 2020
John Hess, CEO of Hess Corporation, a large U.S.-based independent oil producer, recently told a Houston audience where he’s putting the company’s money these days: Offshore drilling.
That should strike those who know of Hess Corporation’s heavy involvement in the Bakken shale play (in North Dakota) as a bit strange. Hess says the company will “use cash flow from the Bakken to invest in longer-term offshore investments.”
Hess told his audience that “key U.S. shale fields are starting to plateau, calling shale ‘important but not the next Saudi Arabia.'” Setting aside whether Hess is actually getting investable cash from the Bakken, the constant refrain from the U.S. oil industry has been precisely that shale plays ARE the next Saudi Arabia.
Someone should send a note to the U.S. Energy Information Administration (EIA) that maybe it’s not all going to work out. If Hess is right about a peak in U.S. shale oil production soon, that peak will come about a decade earlier than the peak forecast by the EIA.
None of this will come as a surprise to geologist David Hughes whose most recent update on U.S. shale oil and natural gas production suggests that not only will Hess be proven generally correct, but that production will fall much farther than the EIA believes in the coming decades. Hughes continues to rate EIA estimates of ultimate recovery from America’s shale oil and natural gas fields as “extremely optimistic, and highly unlikely to be realized.”
U.S. shale oil production has been a major driver in the growth of world oil supplies. Last year the United States accounted for 98 percent of global growth in oil production. Since 2008 the number is 73 percent. It’s not hard to imagine that a slowdown in U.S. oil production growth or worse yet a decline in overall U.S. production would mean trouble for the entire world.
With 81 percent of global oil production now in decline, even a plateau in U.S. production would likely result in a worldwide decline. The world is simply not prepared for such an event—in part, because agencies such as the EIA are either unable or unwilling to grasp the plain facts and present them to policymakers and the public.
When the real trouble arrives in the oil markets, the EIA and other forecasters will likely just shift their analysis and cite some “impossible to predict” factors that will have led to the stunning reversal of fortune. But those factors are in evidence right now, if only the EIA and others have eyes to see them.
Photo: Oil shale mine near Kohtla-Järve, Estonia (2007). By Wilson44691 via Wikimedia Commons https://commons.wikimedia.org/wiki/File:Oil_Shale_Mine_northern_Estonia.JPG
Tags: Shale Oil
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Hi Reggie, like you I have been stuck in this share for years, seen it rise and fall so many times with rampers appearing and disappearing like the wind. Everyone getting excited as we nearly made it back to where we were just over a year ago.
And back down it goes... Again they will need to raise funds just to keep going let alone be involved in any drills. The only other way forward is to sell assets which would defeat the nature of their business. But at these prices it would be a huge amount of shares pumped in to raise a few hundred thousand.
https://www.telegraph.co.uk/business/2020/02/08/has-hong-kong-hedge-fund-got-premier-oil-barrel
I wouldn't give them a penny in subscriptions