Technical & Fundamental Oil Reports Specialists

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US oil stocks at a record high

Published Thursday, September 3rd, 2015

Oil was hit by another heavy sell off yesterday following the release of bearish EIA weekly stock figures. WTI traded down to $43.21/bbl (-2.20) and Brent to $47.74/bbl (-1.82). It was then followed by a strong rally into the close taking WTI to $46.25 (+0.84) and Brent to $50.50 (+0.94). The rally may have been a reaction to strengthening US equities but more likely it was a rebound founded on technicals after important support held.

Yesterday’s EIA figures paint a picture of a country drowning in oil. Total commercial stocks built last week by 5.7 million bbls and at 1.29 billion bbls are the highest level ever reached. They are 15% above last year’s levels and 13% above the 5-year average. The US is now holding just under 2 billion bbls of oil in stock including 695 million bbls as strategic reserve. This provides the country with close to 110 days of demand cover. Think how much this involves in terms of money tied up and the fall in the value of the asset over the last year.

Crude built by 4.7 million bbls following a reduction in refinery run rates to 92.8%. Gasoline had a marginal draw and distillates a marginal build. Crude stocks are 27% above last year’s levels, distillates 22% higher and gasoline 2% higher. Cushing stocks drew by 388,000 bbls leaving stocks there at 57 million bbls which is up 37 million bbls on last year and 19 million bbls on the 5-year average.

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Posted by David Hufton

[…] Total US commercial stocks grew by 5.7 million barrels a day – and at 1.29 billion barrels are the highest level ever reached. (Number crunching, courtesy of David Hutton of the PVM oil report) […]