The logic behind strong oil rally: US oil inventories down again

US crude oil inventories



Exactly as some analysts anticipated, the EIA, the US Energy Information Administration, released its much-awaited data yesterday while confirming that US oil inventories were down again for the week ending December 25.

The drop was much more than what was expected - 6.06 million barrels.

The value was significantly larger than the number predicted by the API, the American Petroleum Institute, just a day earlier on December 29; the predicted drop was 4.8 million barrels.

There is more encouraging news on the crude oil front: the exports grew by 3.6 million barrels a day, especially to Asia, buckling the previous trend that used to be associated with the pandemic.

More interactive charts that matter in when it comes to determining the oil price are here:



Popular Posts

Wil Iran attack Israel soon? Only time will tell!

Image
  Credit: Google Maps With Iran's threat against Israel in a direct strike, the tension in the Middle East went up a few notches on the scale of uncertainty, as the United States made it clear once again that it would not be a passive observer if a conflict erupts. The rising tension came in the wake of the daring attack carried out by Israeli F-35 fighter jets on the building that was adjacent to the Iranian embassy in Damascus, the Syrian capital. Seven Iranian nationals, along with a few Syrians, died in the attack, two of them were from the elite Iranian IRGC - Republican Guards; they were very high ranking officers. In response to the attack, Ayatollahs Ali Khamenei, the Iranian  supreme leader, said that Israel will be punished in kind, during an Eid message on Wednesday; he did not imply in what form the retaliation could come; nor did he say whether it was imminent, leaving the ambiguity open to interpretation by military and political analysts. The supreme leader, however,
Read more

The Sun goes on Vacation: total solar eclipse - April 8, 2024

Image
Total Solar Eclipse: April 8, 2024: Vivax Solutions The lucky folks along a relatively narrow geographical band, from Mexico all the way to Canda, are going to witness a rare celestial spectacle on Monday, April 8 – a total solar eclipse. The path of totality – where people can witness total darkness - cuts across fifteen US states, before rolling into Canada in its final mesmerising leg. In mathematical proportion to the excitement, the enviably famous American entrepreneurial spirit has already gone into full swing: the hotel bookings, closer to the path of totality, have gone up exponentially and so have the prices; in addition, traders lost no time in springing into action in promoting related merchandise and of course, safety goggles, while implying that exercising caution before looking heavenward is a virtue, indeed.    The excitement that borders on ecstasy is perfectly understandable: astronomical charts show that there will not be another total eclipse for twenty years th
Read more

Will Venezuela manage to extend the period of waiver of sanctions?

Image
  Chart:www.oilfutures.co.uk | Data: OPEC As the 53rd JMCC, Joint Ministerial Monitoring Committee, of the OPEC+ is scheduled to take place on April 3, analysts are looking at every possible scenario that could rise in the aftermath of such a meeting. A consensus has already emerged among them that the OPEC+ would stick to its production quota for each member country. That means the official position of the OPEC+ will maintain the current production cuts as long as necessary, without increasing the production to appease the influential customers.  The cartel wants to stick to the production targets, already agreed upon, in 2024 without unnecessarily worries about the potential consequences.  With the OPEC+ sticking to it guns, without increasing the output, the top consumers of oil turned to Venezuela to buy it on the cheap as the former was given a waiver to increase the production and then sell, provided that free and fair elections will be held before the waiver expires. Venezuela i
Read more

Latest Energy News from EIA