Interesting whiplash action today compared to yesterday as crude rises by almost 4% despite an EIA reported rise in crude inventories and a drop in gasoline stocks, an improvement in durable goods orders and the first decline in 10 weeks at the inventory number in Cushing, OK where deliveries for the WTI crude oil contract…Read moreRead more
I think the snow storm has sort of dampened the impact of rising dollar and the EIA demand uptick played into this week. But if Euro continues to weakens and temperatures pick up later in February we should see a downward trend in oil. Reactions?
Slightly dated but still very relevant article by Alan Reynolds at CATO that explains where Oil consumption actually goes. The key point being made in by Alan in 2005 was don’t look at vehicular consumption of refined products, look at industrial production and usage driven by manufacturing, heating, farming and logistics. Alan also goes…Read moreRead more
Adnan, Agnes and I have been talking about the deviation between oil price and natural gas prices for some time. A few days Agnes pulled together the data to answer two basic questions a. How correlated are Crude Oil (Brent) and Natural Gas (Henry Hub) prices b. Is this correlation stable over history or are there periods…Read moreRead more
There are two primary classification of producers when it comes to crude Oil. OPEC and non OPEC. Total expected production for 2010 as per EIA is expected to range between 85 – 86.3 million barrels per day. EIA consumption estimate for 2010 is between 81 – 91.6 million barrels per day. US and OECD…Read moreRead more