Posted on 06/02/2021 2:36:15 PM PDT by SaxxonWoods
The American Petroleum Institute (API) on Tuesday reported a draw in crude oil inventories of 5.36-million barrels for the week ending May 28.
Analysts had predicted a draw of 2.114 million barrels for the week.
In the previous week, the API reported a draw in oil inventories of 439,000 barrels after analysts had predicted a draw of 1.050 million barrels. Since the start of 2020, crude oil inventories have grown by more than 46 million barrels, according to API data. ---- Oil prices were trading up on Wednesday afternoon, on bullish signals from OPEC that saw the group stick to its output plans for the coming month. The bullish OPEC news, combined with a lack of new developments regarding the Iran/U.S. nuclear deal, saw prices climb by more than 1% by noon. At 12:32 p.m. EST, WTI was trading up $0.89 (+1.31%) at $68.61 prior to the data release—up $2.50 per barrel at that time. Brent crude was trading up $0.87 per barrel (+1.24%) at $71.12 per barrel.
(Excerpt) Read more at oilprice.com ...
But how many even remember this:
Between Jan, 2010 and Dec, 2014 oil stayed in a range between $80 and $115 a barrel. 4 years.
And people think today's price is high? Oh, this is going to to be fun to watch if the current predictions are correct.
Maybe people are driving less and consequently more oil supply?
“Maybe people are driving less and consequently more oil supply?”
That was true last year. This year we are driving more again and flying a lot more again, and OPEC has held the line on production. Biden is hampering production in the US. This is true worldwide as well. OPEC likes prices close to $100, they need those prices to pay out their welfare states.
We may go back to those 2010-2014 prices.
(API) on Tuesday reported a draw in crude oil inventories of 5.36-million barrels for the week ending May 28.
Analysts had predicted a draw of 2.114 million barrels for the week.
....same analysts that predicted the just employment numbers?
CNBC chimes in:
“Demand is ramping up very quickly because everybody’s driving, and we have the reopening of Europe, which is really starting to happen,” said Francisco Blanch, global commodities and derivatives strategist at Bank of America. “India seems to have hit an inflection point, in terms of cases, which in my mind could mean you also get a return of mobility.”
Thanks, Barack!
“....same analysts that predicted the just employment numbers?”
Not at all. Unexpected short term bumps up and down happen, but looking at the pattern, which is the world is reopening, much more flying, driving and ships running, economies rebuilding the lost production, it all says supply will be under pressure, demand is going up fast worldwide.
My point was that people were having a fit when oil hit gas hit $3.00. Where were they between 2010 and 2015 when it was $3.60-$4.20 a gallon for 4 years straight? Meanwhile Biden keeps hampering supply. The fun may only be beginning.
Yep, and Biden (Obama’s 3rd term) is just getting started. Obama himself says the same thing. And there’s no shale revolution to happen this time. Yes, production will rise, but not like those days.
July 2008 oil was over $147.00 per barrel.
July 2008 oil was over $147.00 per barrel.
Yes that was the modern peak. IIRC, it went to $27 a barrel very soon after.
The analysts couldn’t have seen that? That was my point.
Iranian oil depot fire has nothing to do with it.
Green New Deal has nothing to do with it.
Pipeline cancelation has nothing to do with it.
I Know! Evil Capitalists!
Bfl
After in recent months crude oil prices have clearly recovered from their COVID-19 slump on steadily increasing demand, Russian Deputy Prime Minister Alexander Novak addressed the much anticipated decision-making at the upcoming OPEC+ conference set for August and the expectation that it will decide to raise output significantly beyond the current pandemic-induced strategy of gradually releasing more barrels into a strengthening oil market.
Novak confirmed the upcoming OPEC+ conference will address and finalize oil output for August and other months, while stressing that oil prices shooting too high “may force users to switch to other energy sources.”
On that front in particular, he blasted current IEA proposals and a “road map” being pushed which in the end could lead to $200 a barrel oil(!):
If the world were to follow the International Energy Agency’s controversial road map, which said investment in new fields would have to stop immediately to achieve net-zero carbon emissions by 2050, “the price for oil will go to, what, $200? Gas prices will skyrocket,” Novak said.
And naturally Qatar and Saudi Arabia seconded that dire assessment, vowing to continue expanding their oil and gas facilities while pointing the finger at the climate activists for seeking to starve industry cash. Bloomberg presents the Gulf statements Thursday as follows:
The “euphoria” around the transition to clean energy is “dangerous,” Qatar’s Energy Minister Saad Sherida Al Kaabi said at the St Petersburg International Economic Forum in Russia on Thursday.
“When you deprive the business from additional investments, you have big spikes” in prices, he stressed further.
As a reminder, IEA’s roadmap set out in the Paris Accords for achieving net zero carbon emissions by 2050 requires reducing emissions as much as possible then offsetting the rest with “carbon removal” plans financed by carbon credits.
Source: IEA
However as we’ve detailed before, with economists expecting global growth to expand at even faster rates thanks to the infusion of stimulus inspired by the pandemic, it follows that energy demand will also increase more quickly. Despite this, many economists and scientists expect that improvements in energy efficiency and the shift to renewables means that global energy demand will be around 8% smaller than it is today in 2050, even though the global economy will be more than twice as large as it is today.
With this in mind, it was perhaps the recent Saudi comments from St. Petersburg which put it best, dismissing the “la-la-land” scenario in an earlier statement...
“Saudi Energy Minister Prince Abdulaziz bin Salman has already dismissed the IEA road map, which would limit the average increase in global temperatures to 1.5 Celsius, calling it a la-la-land scenario,” he said according to Bloomberg. “When asked on Thursday if oil is dead, he responded by saying the kingdom is increasing its production capacity.”
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