Department of Energy Reports Second Biggest Inventory Build In a Year
Oil inventories (red) with WTI
U.S. Oil ETF:
WTI with 200 day moving average:
ZH: March 20, 2016
Another False Dawn In Oil
"Traders are “following the tape,” meaning they have covered previous short bets and are following the momentum testing increasingly higher price thresholds as long as someone is willing to take the other side of the bet. That’s the way the market works."
"Current inventory levels are 50 mmb higher than during the false rally of 2015 and they are still increasing."
"International stocks reflect a similar picture. OECD inventories are at 3.1 billion barrels of liquids, 431 mmb more than the 2010-2014 average and 359 mmb above the 2015 level"
"storage volumes must fall probably into the 2011-2014 range before a meaningful price rally can be maintained. That assumes that demand can tolerate those higher prices."
