Pretty benign.....
"The American Petroleum Institute reported late Tuesday that U.S. crude supplies rose by 1.3 million barrels for the week ended Feb. 21, according to sources. The API data also reportedly showed gasoline stockpiles edged up by 74,000 barrels, while distillate inventories fell by 706,000 barrels. "
It's been a couple weeks now and it would be hard to say there has been any extreme impact from coronavirus in crude supplies, negative or positive.
On to the EIA report
The sky is falling! The sky is falling!
https://www.cnbc.com/2020/02/25/coronavirus-latest-updates.html
San Francisco Mayor London Breed declared local emergency, even though there aren’t any confirmed cases in the city, NBC Bay Area reported.
If this were weather, it would be like issuing tornado warnings on a sunny day with no threat of severe weather in the Spring...based on a potential threat at some point later in the Spring that might but probably won't happen.
Tornado preparedness week, yes very smart thing to do and thats what the NWS does every year.
Warnings and emergencies when there is no legit threat?
It messes up people's ability to discern between legit, immediate threats that require immediate action vs a low probability distant threat that we should all be prepared for but not worry about.........until it becomes a legit threat.
People are already way over reacting and many are petrified. We don't need public officials crying wolf! wolf!, when there isn't 1 wolf in the entire city.
Preparedness yes, emergency no.
There has to be some demand destruction somewhere. Is it negligible? Is China pouring it into storage? Is it in floating storage? Is Saudi turning down the taps and combined with Libya output supply has been lowered enough to equal out the demand reduction?
1) US economy has not suffered any yet
2) doesn't that report just show US supply not rest of world?
3)the slow down if it is occurring will take time to show builds in inventory?
4) the market is forward looking?
5) markets may over react?
1) US economy has not suffered any yet...Agreed
2) doesn't that report just show US supply not rest of world? True enough, but we are now exporting 3+ mbbls a day. Thats not an insignificant amount. If the world is using less oil, there is no way we would escape that.
3)the slow down if it is occurring will take time to show builds in inventory? That’s the big question. It’s been a couple weeks now. Is it coming or not?
4) the market is forward looking? Back to #3
5) markets may over react? Don’t they always? :)
Thanks Jim
Wonderful points Jim!
Oil prices traded higher on Wednesday as data from the Energy Information Administration revealed that U.S. crude supplies edged up by 500,000 barrels for the week ended Feb. 21. Analysts polled by S&P Global Platts expected the data to show a rise of 2.8 million barrels. The American Petroleum Institute on Tuesday reported a climb of 1.3 million barrels, according to sources. The EIA data also showed supply declines of 2.7 million barrels for gasoline and 2.1 million barrels for distillates.