Good stuff. Thanks.
I think once it hits 440/bbl the Saudi’s cut production to stabilize.
BHI shows rig counts peaking at 1609 in October and falling 8% to 1482 last week.
http://www.wsj.com/articles/brent-crude-falls-below-50-a-barrel-1420609392
Oil-Product Prices Fall as Supplies Climb
U.S. Inventory Data Confirm the Market Is Still Oversupplied
By Nicole Friedman
Updated Jan. 7, 2015 7:06 p.m. ET
Prices at the gas pump are heading even lower.
Gasoline futures fell to nearly a six-year low on Wednesday after U.S. government data showed oil and fuel supplies rising to a record high last week, the latest evidence of a petroleum glut that has rattled financial markets and raised questions about the strength of global economic growth.
U.S. crude-oil prices rose modestly, but there was little indication that the market, which has plunged by 55% since late June, has hit a bottom.
Weekly inventory data released by the federal Energy Information Administration reinforced the belief among many investors and traders that increasing oil output continues to overwhelm the growth in demand, a situation that is likely to further undercut prices across the board.
U.S. stockpiles of crude oil, refined fuels and other types of petroleum rose 0.9% to 1.149 billion barrels in the week ended Jan. 2, according to the EIA. That is the highest level ever in weekly data dating back to 1990, and beats the previous high set in June 2013. The total doesn’t count the barrels held in the nation’s strategic petroleum reserve.
“There is no shortage, anywhere, at the moment,” said Donald Morton, senior vice president of Herbert J. Sims & Co., who oversees an energy-trading desk at the Fairfield, Conn., investment bank. “Our inventories are getting high.”