Thursday, December 17, 2015

Mutual Assured Bankruptcy

December Oil inventories are highest in 80 years

"Analysts say the 4.8 million-barrel increase in the U.S. crude inventories last week took the market by surprise as the general expectation was for a slower expansion or a decrease. At 490.7 million barrels, U.S. crude oil inventories remain near levels not seen for this time of the year in at least 80 years "

“We continue to wait patiently for [U.S.] production to drop; however, it is taking painfully long. Low oil prices do not seem to have hurt U.S. producers...”

"Concerns of a prolonged oversupply also prompted Citi to forecast U.S. oil will likely dip to as low as the $20 range"

Crude stored (black). Crude daily production (red)
Blue arrows show December levels for past few years...

Oil with oil volatility