Posted on 07/06/2021 5:27:17 PM PDT by RomanSoldier19
he U.S. oil market is tightening as commercial crude inventories are declining at a fast clip and driving wider time spreads in the WTI Crude futures curve.
The curve is strengthening into backwardation, the state of the market signaling tighter supplies with the prices of the nearer futures contracts higher than those further out in time.
The premium of the nearest contract to those for later delivery has been widening in recent days, suggesting that immediate supply is tightening. The spread between the cash WTI and the November contract, for example, was $3.40 early on Friday. This is the widest premium of prompt prices to the four-month futures price since 2018, according to Bloomberg estimates.
The tighter prompt market reflects the continuous decline in U.S. commercial crude oil inventories, the relatively flat domestic crude oil production, and the relatively high U.S. oil exports despite the narrow WTI discount to Brent.
U.S. commercial crude inventories fell by 6.7 million barrels for the week to June 25, as per Energy Information Administration data. This was the sixth consecutive weekly drawdown in crude stockpiles.
Total commercial crude inventories at 452.3 million barrels are now 15.2 percent lower than in the same week last year. They are also 3.4 percent lower compared to this time two years ago, before the pandemic.
(Excerpt) Read more at oilprice.com ...
We are going to have a long, hot summer followed by a cold, hungry winter.
But I DID save $0.16 on my July 4 cookout!
Nice, timely, post...
By 2022 a lot of Americans are going to wake up and realize the party's over, but the hangover remains.
Enjoy the suck!
A recent study of my democrat friends, they are still clueless.
Soon we will bring back the misery index.
Of course.
Someone has got to be making money off of it somehow, somewhere.
Since Keystone Pipeline was shut down I have seen an uptick in oil tanker railroad cars heading South on the KCS-Canadian Pacific rail line by our house. LOTS of oil tankers.
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