Crude is heading lower today after a solid build to crude inventories from the weekly EIA inventory report.
(Click to enlarge)2) U.S. crude inventories have reached a new record high with this week’s EIA report, climbing to 532 million barrels.
Currently, a quarter of the electricity consumed by the water sector is for wastewater collection and treatment.
(Click to enlarge)5) Finally, it is World Water Day, so let’s take a look at water demand from the energy sector, as well as energy demand from the water sector (take a second to let that sink in).
The chart below shows U.S. oil inventories on a year-over-year basis, highlighting how inventories have been above year-ago levels for the past couple of years, peaking in late 2015 at over 100 million barrels.
Crude Oil Prices Rebound From Support, Selling Interest Persists
Oil prices were able to recover from support levels on Wednesday with a significant move higher later in the US session, but there was still selling interest on rallies with an underlying paring of long positions.
Oil prices moved higher during the New York session with WTI approaching $48.40 early in the Asian session.
The latest Energy Information Administration (EIA) data recorded an increase in inventories of 4.95 million barrels compared with an expected build of 2.8 million barrels.
There was strong investor demand as prices dipped to four-month lows with notable interest in Brent as it dipped below $50.00 p/b, but there was further speculation that rallies would quickly attract strong selling interest, especially given underlying supply concerns.
This pushed inventories to a fresh record high and was also above Tuesday’s API build of 4.5 million barrels.
The lengthy process of conventional oil is precisely what gave OPEC the ability to pull the strings of international prices.
The investment bank also has some bad news for the oil industry, noting that the period between this year and 2019 will see a hefty increase in global oil production thanks to large-scale investments made in 2011-2013.
Goldman commended OPEC on its decision to cut production, adding, however, that it had an opposite to the desired effect by “underwriting” shale oil production, and spurring the growth in it that we are now witnessing.
In fact, Goldman expects the possible addition of 1 million barrels of crude to global daily output in the period.
Several OPEC members have already expressed their readiness to take part in an extension of the cut or have at least acknowledged the need for such an extension.
collected by :Jack Alex