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The Oil Bandit's avatar

Stocks doesn't matter anymore. Barrels are either on a tank or on a ship.

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Tim Dallinger's avatar

With the exception of Libya recently, there's been very few global production interruptions. Should that occur with inventory so low and short interest so high, there will be fireworks.

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The Oil Bandit's avatar

yes indeed, but these spikes are short lived. The market is sorting itself out rather quickly. Now, with the curve structure we should see more builds across the board, not necessarily a bearish outcome. For products on the other hand, I do track stocks closely to gauge refining run rate weeks ahead. That is worrisome. Good job, anyway, I could never setup the EIA excel add in to work properly

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Tim Dallinger's avatar

Cost to carry is too high to incent storage even with backwardation fading. Spot isn't telling the correct story. I talk to mid-con producers who are fielding calls from trading houses to purchase physical heavier grades at a premium.

Crude will build as we head into shoulder season but products will draw. Product demand is better than reported. This should give cracks a needed boost

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Joshua Hughes's avatar

Makes me feel better that someone who knows WAY more than I do is also confused.

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hex0ctb1n's avatar

Hoping today was the start of some normalization.

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