FYI: Another week, another build in crude oil inventories. For a record twelfth straight week, crude oil inventories increased, and as has been the case for most of those twelve weeks, the build in stockpiles was more than expected. While traders were looking for crude oil stockpiles to increase by 4.2 million barrels, the actual increase was 4.766 million. That takes total crude oil inventories to a record 471.644 million barrels, which is more than 136 million barrels (39%) above average for this time of year.
Regards,
Ted
https://www.bespokepremium.com/think-big-blog/record-streak-of-crude-oil-inventory-increases/
Comments
Contrary to conventional wisdom, the high inventories might be a sign traders expect the price to rise. They could be buying it up cheap at the wellhead and hoarding it on tankers, in above-ground storage tanks, below ground storage tanks, gas cans, tea-cups and shoes as well.
I've felt for a while oil wouldn't hit $40. Seemed to bottom 2 or 3 dollars above that. As an investor in a couple energy-intensive funds, am a bit concerned to hear that they've got a solar-powered plane circumnavigating the globe right now. However, I believe it will be some time before the B-747 & A-380 can operate soley on sun-power.
I've been wondering since all of this started if our brilliant leaders have been using the opportunity to stash away any cheap oil in the so-called National Strategic Petroleum Reserve. I wouldn't be surprised if the answer was "no, due to the budget sequestration we can't do that right now" or something equally moronic.