Currently viewing the tag: "The Energy Report"

Maybe the Cushing Oklahoma won’t get filled up so fast after all. Hedge funds that had a record short position coming into this week must be a little bit worried that oil prices could not stay lower after the Energy Information Administration reported a mind boggling 10.3 million barrel build in crude oil supply. Yet [...]

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Saudi Arabia raised it selling price for oil in what could be like a mission accomplished banner in the OPEC oil production war. The state owned Saudi Aramco raised its Asian prices for Saudi light oil delivery in April by $1.40 a barrel and its U.S. prices by $1 a barrel. It seems that the [...]

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Oil prices shook off bearish news for a minute when private forecasters released their estimates of oil storage in the NYMEX delivery point in Cushing, Oklahoma. Genscape predicted that supply into Cushing Oklahoma would only increase by 1.4 million barrels this week suggesting that Cushing, Oklahoma may be filling up at a slower pace than [...]

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Hedge funds put on a record short position as China’s cut in interest rates over the weekend. The move by China is both bearish in the short term for oil but net bullish over all.  The reason why it is bearish in the short term it is adding downward pressure as the dollar rallied after [...]

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Oil Storage Wars. The Energy Report 2/27/15

On February 27, 2015 - 7:15 AM By

Ultra oil bears have been basing their predictions on many things but first and foremost they are betting on sharply lower prices because they believe oil storage will soon be filled. They say at that point oil producers will have to dump oil at any price just to get rid of it causing another sharp [...]

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Oil, jet fuel, gasoline and copper demand is showing signs of coming back from the dead as low prices and global central bank easing is putting bullish life in these former bear markets. Oils strong rally, even in the face of 8.4 million barrel build in the Energy Information Administration (EIA), should put the bears [...]

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China Expanding. The Energy Report 2/25/15

On February 25, 2015 - 7:38 AM By

A surprise on Chinese manufacturing and a smaller than expected increase in Cushing oil supply is giving oil a reason to believe. Perhaps with the increase in China’s manufacturing data may be an early sign that massive economic stimulus could improve the demand prospects for oil. Saudi Arabia says demand is growing so it is [...]

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While the oil market seems focused on the short term impact of over supply the real story may be the impact of easing down the road. Central bank stimulus and low prices are already showing an uptick in demand response and we know from history that global central bank easing is always bullish for oil [...]

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Rig Time. The Energy Report 2/23/15

On February 23, 2015 - 7:36 AM By

The focus on the U.S. rig counts is intense as ever. Traders who never really cared about rig counts are now focusing on them more closely.  U.S. rig counts kept falling last week at a record pace but the drop off was not as deep as some traders expected. The count fell by 48 units [...]

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Maybe rig count and billions of dollars in capital expenditure cuts might matter after all. Despite the talk by many that the historic drop in oil rig counts really did not matter because the existing wells would still continue to produce and production in the U.S. would not be impacted, at least one energy company [...]

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Margin of Error. The Energy Report 2/19/15

On February 19, 2015 - 7:45 AM By

The American Petroleum Institute (API) reported that U.S. crude supply increased by a record breaking 14 million barrels give or take 3 million barrel or so. While the massive build is not to be taken lightly it is obvious that the API is playing catch up with the Energy Information Administration number. Last week the [...]

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Oil bears are getting even more bearish with some now calling for oil at $10 a barrel. Yet many of these exceedingly bearish calls are coming after many missed the majority of the downside move in the first place. They point to sluggish global demand and the path to record global oil inventories both of [...]

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