Wednesday, November 11, 2015

Oil Ground and Pound

BBG: Nov. 10, 2015

"Iraq, pumping the most since at least 1962 amid competition among OPEC nations to find buyers, is discounting prices to woo customers." 

"The ships bringing the 19 million barrels include vessels that left Iraq’s Basra Oil Terminal and are currently signaling U.S. ports as their destination."

"The U.S. is pumping 450,000 barrels a day less crude than during the peak in June. If all that oil were replaced by supplies from Iraq, it would require about seven supertankers each month."

Because we all know the U.S. needs more oil:

U.S. production (red line), currently at 9.1 million barrels per day is still near record levels for the past 40 years. And days oil in storage (black) is at a 35 year high. The 2009 bottom in price, circled in blue:

U.S. oil price (black) with commodities (red). Yesterday's closing prices: