Oil prices jump
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Started by metmike - April 29, 2020, 1:29 p.m.

From yesterday's API:

Oil prices jump after smaller than feared U.S. inventories build

https://www.oilandgas360.com/oil-prices-jump-after-smaller-than-feared-u-s-inventories-build/


U.S. crude inventories rose by 10 million barrels to 510 million barrels in the week to April 24, data from the American Petroleum Institute (API) showed on Tuesday, compared with analyst expectations of 10.6 million barrels.

Gasoline stocks fell by 1.1 million barrels, the API said, compared with analyst forecasts for a rise of 2.5 million barrels.

“In part thanks to better than expected, or more accurately not as bad as feared, U.S. inventory data, WTI prices have managed to make up lost ground,” JBC Energy said.

“Aside from a Cushing build that was hardly extravagant, API inventory data reportedly also hinted at the first gasoline stock draw in several weeks; a signal which optimistic market observers tend to like.”

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By metmike - April 29, 2020, 1:32 p.m.
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EIA reports a 9 million-barrel weekly climb in U.S. crude supplies

https://www.marketwatch.com/story/eia-reports-a-9-million-barrel-weekly-climb-in-us-crude-supplies-2020-04-29


Oil futures held on to the bulk of their gains on Wednesday after the Energy Information Administration reported that U.S. crude inventories rose 9 million barrels for the week ended April 24. That marked a 14th consecutive weekly rise, but was slightly lower than the average increase of 9.8 million barrels forecast by analysts polled by S&P Global Platts. The American Petroleum Institute on Tuesday reported a climb of nearly 10 million barrels, according to sources. Crude stocks at storage hub Cushing, Okla. rose by about 3.7 million barrels for the week, according to the EIA. The government figures also showed gasoline supply fell by 3.7 million barrels, while distillate stockpiles added 5.1 million barrels. The S&P Global Platts survey had shown expectations for supply increases of 2.9 million barrels for gasoline and 4.3 million for distillates

By metmike - April 29, 2020, 1:38 p.m.
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U.S. Oil Fund sitting on $726 million in unrealized losses before April

https://www.oilandgas360.com/u-s-oil-fund-sitting-on-726-million-in-unrealized-losses-before-april/

BOSTON  – The United States Oil Fund(USO), the share price of which has been crushed this month by big bets on front-month oil contracts, revealed on Tuesday that it was sitting on more than $700 million in unrealized losses heading into April.


It will exit its position in the front-month June crude oil futures contract and may need to hold more cash to satisfy potential margin requirements. USO has been scrambling to diversify its holdings into later-dated contracts from the most heavily traded front-month contract.

The fund’s year-to-date return is -83%, but it has attracted $3.2 billion in net deposits this month from investors betting on a rebound in the oil market.

By metmike - April 29, 2020, 3:12 p.m.
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By metmike - April 29, 2020, 3:13 p.m.
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By metmike - April 29, 2020, 3:46 p.m.
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Fleet Of 28 Saudi Oil Tankers Could Send U.S. Oil Prices Crashing In May

 

https://oilprice.com/Energy/Crude-Oil/Fleet-Of-28-Saudi-Oil-Tankers-Could-Send-US-Oil-Prices-Crashing-In-May.html?utm_source=browser&utm_medium=push_notification&utm_campaign=vwo_notification_1588206444&_p_c=1

“The total volumes booked to arrive from Ras Tanura are four times higher than the previous four-week average of imports from Saudi Arabia. Given the current storage situation and the level of congestion on US coasts, we find it unlikely that all tankers will be able to unload upon arrival. The congestion at US ports has reached new highs,” says Paola Rodriguez-Masiu, Rystad Energy’s Senior Oil Markets analyst.

If all the Saudi tankers unload, the crude they carry will offset during May almost all of the production reductions from March levels, effectively maintaining the current high storage filling rates.

The limited storage is a growing concern in the oil market and among the key reasons why prices have taken a steep downturn in recent weeks, with US WTI crude even trading negative a few days ago.

By metmike - April 29, 2020, 5:01 p.m.
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By wglassfo - April 29, 2020, 5:16 p.m.
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I wonder how many are betting on a limited navel conflict between Iran and the USA

Seems to me Trump gave the order to attack any Iranian gun boat that approaches a USA navel vessel

If  that happens one person I read that if the USA wants to continue the conflict, as land operation on the coast of Iran would be required,, to continue the military initiative

I don't know if this is a reason why Trump wants to pull all troops out of Afghanistan or if this separate policy thinking

No matter, I could see both the troop pull out happening, and an attempt to engage Iran, as Trump has spoke about his desire for both events to happen

Now what would happen to the price of oil if there was navel action with Iran??

USO will either be heroes or the goat depending on events going forward.  Somebody must want to take the bet on higher oil prices, as USO has lost big money so far, and still new money comes into their coffers