Category Archives: Crude Oil

COTD: Venezuela Oil Production (t/bpd)

Ergo (among other things), this: There is some minimum threshold level of reserves most central banks will not cross and will resort to various policies to protect and ration foreign exchange reserves, including devaluation, import restrictions, capital controls, selective default, … Continue reading

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Deflation Or Change In Relative Prices?

Interesting chart via statista measuring the cost of one hour of light through ages. We find it relevant today as there is much confusion over the concept of deflation and inflation.  It appears many can’t distinguish between the difference between … Continue reading

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COTD: U.S. Shale Breakeven Oil Prices

(COTD = Chart of the Day)                   Source:  World Bank-Global Monthly

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Crude Oil Gets C- On Today’s Test

We were looking for better price action in crude oil after this morning’s EIA release, which did confirm last night’s  API monster draws in inventories and showed that Cushing inventories at their lowest levels since Nov 2015.   But U.S. … Continue reading

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Crude Faces Key Test Today

After a monster draw on inventories in the API data released last night,  crude oil faces a key test on the EIA inventory release today.   If EIA confirms API and the oil price can’t hold its gains,  trouble in … Continue reading

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COTD: Petroleum Products Made From A Barrel Of Crude

On average, U.S. refineries produce, from a 42-gallon barrel of crude oil, about 20 to 19 gallons of motor gasoline, 12 gallons of distillate fuel distillate fuel, most of which is sold as diesel fuel, and 4 gallons of jet … Continue reading

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QOTD: The Robots Are Coming, Err, Here

Robots Are Taking Over Oil Rigs – Bloomberg  –Automation means wells need only five workers, down from 20 …Rigs have gotten so much more efficient that the shale industry can use about half as many as it did at the … Continue reading

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Why Crude Oil Trades So Poorly

Crude oil is the new widow maker.  It trades heavier than a wet dawg in a New York thunderstorm.    Rallies have no legs and it seems the only bid these days are the shorts scrambling for cover. Note the recent … Continue reading

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The Rack Trade

Ever have a pairs (spread) trade where both sides were moving against you?  Ouch!  Been there, don’t want to do that.   Well, this is what we call the rack trade  (Kudos to Doug Skrypek for coining the term).   You … Continue reading

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Did Jacques Chirac Wreck A Plan To Exile Saddam to Saudi?

File this one under, “What If.” We have a very good source who tells us that the U.S. and the major European and Arab powers had a plan to exile Saddam Hussein to Saudi Arabia before the Iraq war began … Continue reading

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