{"id":620297,"date":"2018-01-18T13:30:11","date_gmt":"2018-01-18T13:30:11","guid":{"rendered":"http:\/\/juniorminingnews.com\/?p=620297"},"modified":"2018-01-18T13:30:11","modified_gmt":"2018-01-18T13:30:11","slug":"cry-baby-opec-just-got-exactly-what-they-wanted-again-2","status":"publish","type":"post","link":"https:\/\/juniorminingnews.com\/?p=620297","title":{"rendered":"Cry-Baby OPEC Just Got Exactly What They Wanted\u2026 (Again)"},"content":{"rendered":"
\"Inventories<\/a><\/div>\n

By Jody Chudley<\/a><\/span> <\/p>\n

<\/div>\n

This post Cry-Baby OPEC Just Got Exactly What They Wanted\u2026 (Again) appeared first on Daily Reckoning.<\/p>\n

Are you wondering why oil is off to such a rousing start in 2018?<\/p>\n

Look no further than the chart below:<\/p>\n<\/p>\n

This chart depicts where the level of oil in storage at Cushing, OK stands relative to the trailing five year average.<\/p>\n

You can see in early 2015 how that inventory quickly ramped up as OPEC increased production into an already oversupplied market \u2014 bearish for oil prices.<\/p>\n

You can also see just as clearly how quickly inventory evaporated at the end of 2017 \u2014 bullish for oil prices.<\/p>\n

And after I dug further into the data, I came to appreciate just how unusual the current oil situation actually is\u2026<\/p>\n

Days Of Crude Oil Supply \u2013 Incredibly Bullish!<\/p>\n

In addition to providing detail on how much oil is in storage, the EIA also provides detail on how many days of oil is in storage.<\/p>\n

This piece of information tells us exactly how long it would take to consume (at current demand levels) all of the oil currently in storage. It’s a more complete piece of data than just the raw storage data alone.<\/p>\n

At the beginning of September, the U.S. had enough oil in storage to last for 31 days.<\/p>\n

But that number hasn’t held. Since then, U.S. crude storage has shrunk from 31 to only 24 days of coverage.<\/p>\n

This is no surprise given what we already knew about oil inventory levels coming back down.<\/p>\n

However, what surprised me is how truly unusual this decline in days of oil supply is relative to what we have historically experienced.<\/p>\n

Let me show you what I mean\u2026<\/p>\n

The next chart shows the change in days of U.S. crude oil supply that have occurred over the last four months of each year going back to 2002. I put this data together because I believe it shows what a huge outlier the big drop in U.S. storage levels in last few months of 2017 actually is.<\/p>\n<\/p>\n

The normal seasonal move is an increase \u2014 which happens about two-thirds of the time. And in the five years other than 2017 where days of oil supply did decrease, that decrease has never exceeded 1.5 days.<\/p>\n

Until 2017\u2026<\/p>\n

Not only did last year see days of oil supply decrease. The size of the decrease was a whopping 7 days. Over 4x the size of the next biggest move\u2026<\/p>\n

So Exactly What Is Happening Here?<\/p>\n

I can tell you that it isn’t a problem with U.S. oil production.<\/p>\n

This time last year, U.S. production was 8.94 million barrels per day. Today that number sits at 9.49 million barrels per day.1 Meaning the shale growth engine is still firing.<\/p>\n

It’s the global producers that are causing the shakeup.<\/p>\n

Outside of U.S. shale, there is no other growth in production. The Saudi\/OPEC\/Russia group have intentionally restricted production and countries like Venezuela, Mexico and Brazil are struggling to boost output.<\/p>\n

Remember, U.S. shale production represents only about five percent of total global production. It can’t cover global demand growth all by itself.<\/p>\n

Therefore, \u2026read more<\/a> <\/p>\n

Source:: Daily Reckoning feed<\/a><\/p>\n

The post Cry-Baby OPEC Just Got Exactly What They Wanted\u2026 (Again)<\/a><\/a> appeared first on Junior Mining Analyst<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"

By Jody Chudley This post Cry-Baby OPEC Just Got Exactly What They Wanted\u2026 (Again) appeared first on Daily Reckoning. Are you wondering why oil is off to such a rousing start in 2018? Look no further than the chart below: This chart depicts where the level of oil in storage at Cushing, OK stands relative […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"footnotes":""},"categories":[4],"tags":[],"_links":{"self":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/620297"}],"collection":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=620297"}],"version-history":[{"count":0,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/620297\/revisions"}],"wp:attachment":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=620297"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=620297"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=620297"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}