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The American Petroleum Institute reported late Tuesday that U.S. crude supplies rose by 1.4 million barrels for the week ended Dec. 6, according to sources. The API data also reportedly showed stockpile increases of 4.9 million barrels for gasoline and 3.2 million barrels for distillates. Inventory data from the Energy Information Administration will be released Wednesday. The EIA data are expected to show crude inventories down by 2.8 million barrels last week, according to analysts polled by S&P Global Platts. They also forecast supply increases of 3.3 million barrels for gasoline and 2 million barrels for distillates. January West Texas Intermediate crude CLF20, +0.12% was at $59.07 a barrel in electronic trading, down from the contract’s $59.24 settlement on the New York Mercantile Exchange.
Oil is more or less unchanged to 4.30 close. Lets see what tomorrow brings..
Crude -3720K
Cushing -251K
Gasoline +2930K
Distillates +794K
Expectations for tomorrow's EIA report:
Crude -1500K
Gasoline +2000K
Distillates -500K
Refinery utilization +0.7%
I do not pay much attention to API.
EIA are more credible. The markets just manipulate either as they wish.
Crude +3.639mm
Cushing -516k
Gasoline +4.378mm
Distillates -665k
Didn't see that one coming
Rockhopper Exploration plc (AIM: RKH), the oil and gas exploration and production company with key interests in the North Falkland Basin, is pleased to announce that the Falkland Islands Government has extended the PL032 Discovery Area licence (in which Rockhopper has a 40% working interest) (the "Licence") until 1 May 2021, with no additional licence commitments. The Licence was previously due to expire on 15 April 2020.
Gives more time to get a farm in. Coupled with oil still $0.8 up from 4.30 close and ftse looking to open positive, should be a blue day
The American Petroleum Institute on Wednesday said U.S. crude inventories fell by 708,000 barrels last week, while stocks of gasoline fell 4.7 million barrels and distillates declined by 1.6 million barrels. News reports late Tuesday offered differing descriptions of the size of the decline in crude inventories reported by API. The more closely followed Energy Information Administration data released Wednesday morning showed U.S. crude inventories rose by 5.7 million barrels, while gasoline stocks fell 3 million barrels and distillates declined 1 million barrels. West Texas Intermediate crude for December delivery CLZ19, -1.62% on the New York Mercantile Exchange was down 68 cents, or 1.2%, at $54.86 a barrel in recent action.
The Energy Information Administration on Wednesday reported that U.S. crude supplies climbed for a fourth week in a row, by 2.9 million barrels for the week ended Oct. 4. They were forecast to increase by 2.4 million barrels, according to analysts polled by S&P Global Platts. The American Petroleum Institute on Tuesday reported a rise of 4.1 million barrels, according to sources. The EIA data showed supply declines of 1.2 million barrels for gasoline and 3.9 million barrels for distillates. The S&P Global Platts survey revealed expectations for supply declines of 1.2 million barrels for gasoline and 2.5 million barrels for distillates. November West Texas Intermediate crude CLX19, +1.75% was up 48 cents, or 0.9%, to $53.11 a barrel on the New York Mercantile Exchange, down from $53.16 before the supply data.
sky news are reporting on it.
Saying fully back up and running
No all playing statues
Hi All.
I also feel that the majors are investing in shale to take more control of how much is produced, this way they can keep oil closer to where it needs to be .
Just hope we're not linked to any assets this time, can't afford another drag down. Still waiting for the correction when we didn't buy any of Chevrons fields.
ExxonMobil is planning a retreat from the North Sea with a $2bn (£1.6bn) sale of its oil and gas fields after almost 50 years in the UK’s oil basin.
The world’s largest listed company is in talks with a number of North Sea oil firms to sell the stakes it owns in about 40 oil and gas fields alongside Royal Dutch Shell.
The portfolio could fetch the US oil major about $2bn, according to market sources, after a string of similar deals in the North Sea in recent months.
ExxonMobil is responsible for producing about 5% of the UK’s oil and gas through the joint venture which it formed with the Anglo-Dutch firm in the early days of North Sea oil exploration in the 1960s.The joint portfolio – which is entirely operated by Shell – includes the prolific Brent field which first began pumping oil in the North Sea’s 1970s heyday, and lent its name to the global benchmark price for crude oil.
A spokesman for ExxonMobil declined to comment on the sale talks.
The North Sea exit would make Exxon the third major US oil company to turn its back on the UK oil basin after Chevron and ConocoPhillips beat a retreat in multibillion-dollar deals earlier this summer.
The US companies are understood to be backing out of the North Sea in favour of North American shale projects which produce a much quicker return on investment.
There also isn't that many plants in the world geared up to blend shale oil with heavy oil.
I still think that companies like BP are buying up acreage so that they can steady the flow so these big builds can be brought under control.
Watch when pmo has day after day of climbs he disappears, only comes out when oil is bearish.
Totally disappointing so far. We're 5 dollars away from when this reached 110p 46% away.
They can buy mine back for 120p!
Amen to that. Trump is just a chaos creating machine. There is sadly some sense to some of his policies but his legacy will mainly be a trail of inept distruction.
Over the past year, volumes of WTL, with an API gravity of 44 to 50 degrees, have risen, now making up nearly 10% of the Permian’s production as drilling grows in the Delaware Basin, thanks to cost declines and more pipelines additions. WTC has an API greater than 50 degrees.
“With a greater number of active rigs, growth in the Delaware will continue to outpace that in the Midland,” which will boost supplies of discounted WTL, Drillinginfo said in an April blog post.
WTI Midland has traded at an average of $3 a barrel below benchmark futures over the past two months, Refinitiv Eikon data showed. WTL trades even lower than that, fetching an average of $1.60 per barrel below WTI Midland, according to data from price reporting agency Argus Media.
“What we’re seeing in the Permian these days is, we’re getting into a three-tiered system on WTI - we’re starting to see WTI regular, WTI light and WTI condensate, for lack of a better word,” HollyFrontier Corp’s Senior Vice President Thomas Creery said on an earnings call last month.
The three grades historically have not traded with a large discount between them because many of those barrels were being blended with other grades, David Lamp, chief executive of CVR Energy Inc said in an earnings call late in April, but that is starting to end, he said, because of fewer markets for those barrels so far.
“Ultimately, these (discounts) continue to spread as more and more lights are produced, and they have less and less places to go,” Lamp said.
NEW YORK (Reuters) - The United States may now be the world’s biggest crude producer, but the oil being produced in its prolific Permian basin is increasingly too light in density for domestic refiners or for exports, eroding prices for these orphan barrels.
Over the past year, production from the Permian in West Texas and New Mexico has changed, with more super-light oil being extracted, as producers focus drilling in the western part of the basin.
As those volumes increase and heavy crude supplies shrink, refiners are grappling with the mismatch in the density of oil they require and what the country produces, traders said.
U.S. refineries, geared to mostly process heavier and medium crudes that are imported from neighboring producers, are struggling to blend the lighter oil efficiently, market sources said.
That problem has grown more acute this year with heavier crude in short supply after U.S. sanctions on Venezuela, production declines in Mexico and transportation bottlenecks in Canada.
“That’s a big structural problem that’s not going to go away anytime soon. We’ve got this mismatch in the country,” Jennifer Rowland, analyst with Edward Jones said.
“We’ve got refineries that want heavy oil and producers that make light oil.”
As weekly U.S. crude production jumped to over 12 million barrels per day (bpd) earlier this year, exports too soared to a record at 3.6 million bpd in week to Feb. 15, government data showed.
However, the export market for super-light crude has so far been limited, traders said, because there are only a few condensate splitters, or simple refineries designed to handle light crude, in Europe, along with Asian petrochemical plants that could process the grades.
The amount of super-light oil produced in the Permian basin is swelling, creating three distinct markets in the heart of the U.S. shale boom, as the newer grades are trading at varying levels of discounts compared with the benchmark U.S. light crude futures , market sources said.
So far, there are actively traded markets for two distinct grades - West Texas Intermediate at Midland (WTI Midland) - the barrel most associated with the Permian - and West Texas Light (WTL), produced in the western Delaware sub-basin of the Permian. WTL is so light that it is nearly considered condensate, a type of oil that generally requires blending with very heavy crude for U.S. refiners to process it.
Other grades are not far behind. Plains All American’s Senior Vice President Jeremy Goebel said at a Houston conference two weeks ago that in two months’ time, the market will likely start trading West Texas Condensate (WTC), an even lighter oil than WTL.
The Permian’s typical crude barrel has an API gravity, a measure of density in oil, of about 38 to 42 degrees. The higher the number, the lighter the oil.
cont.