Might as well say IF the boss is fiddling the books, he should make an ASX ANN.
Palpable Claptrap.
Phil Flynn:
The Energy Report 06/28/18
Super Psyched Oil Super Cycle
The global oil market super cycle that we predicted would happen a few years ago is becoming increasingly clear to the oil market. It is hard to ignore what is happening when the data in the U.S. and around the globe is seeing the seeds of a bull-market in energy that will last for years.
Just consider the fact that oil inventories in the U.S., the biggest oil consumer, according to the Energy Information Administration (EIA), saw oil supplies fall in the first half on the year for the first time in over a decade. U.S. supply in the first 6 months of the year fell by 6.4 million barrels, when we have seen an average increase of 37 million barrels. In fact, the drop would have been more if it were not for the 30 million barrels of oil that was released from the U.S. Strategic Petroleum Reserve.
That was accentuated by a massive 9.9-million-barrel drop in crude supply, the largest weekly decline since 2016, that put U.S. inventories 4% below the average range for this time of year. That drove oil prices to the highest price levels since November 2014. This came as the U.S. ran the most amount of oil since 2005 and at the same time exported a record 3 million barrels of oil a day and saw oil imports rise. U.S. crude oil imports averaged 8.4 million barrels per day last week, up by 114,000 barrels per day from the previous week.
The market is only going to get tighter. The SYNCRUDE oil sands outage is going to cost the market at least 300,000 barrels of oil a day. The isolation of Iran and the threat by the U.S. to get Iran exports to zero by November, is going to make things even more volatile. You also have Libyan oil disruptions from power struggles and Venezuelan production is falling almost every day. The Private sector can’t raise production fast enough as U.S. oil output has remained flat for the last three weeks.
