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WTI oil price firm at $76 mark as US oil supplies drop
Published on July 15, 2010 by oilprices · 1 CommentWTI oil prices open Thursday’s trading session around the $76 mark as the latest EIA data suggests that US oil supplies have dropped lower than predicted.
This morning, US Light crude oil futures for August 2010 delivery was at $76.64 a barrel, 07.30 GMT on the NYMEX.
Oil prices were supported by the weekly inventories report from the US EIA yesterday, which showed that crude oil stockpiles were down by 5.1 million barrels last week, nearly twice the predicted amount.
The EIA reported that US oil refineries operated at 90.5 percent of capacity last week, but also said that US refining capacity is down this year over 2009.
Meanwhile, the IEA’s July 2010 Oil Market Report had said that delays to new oil projects in the Gulf of Mexico “have already shaved 30,000 barrels per day off both 2010 and 2011 US crude oil production.
Tags: oil, oil price, prices, supplies, trading, us eia, WTI, wti oil price
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Your readers might be interested in my commentary at Seeking Alpha:
Gold and the entire commodity complex should be moving straight up – like a rocket, actually – on a beautiful move down in the Dollah like that.
First off, anyone calling those numbers out of China “bad” is propagandizing, pure and simple. Numbers like that would be the extreme envy of any other country in the world. And China, talking out of its other face, is buying up commodity properties around the globe faster than ever before, demonstrating what it really believes about its own “slowdown.”
Second, those Fed minutes, from a newly-constituted Fed which is arguably the most Dovish in Fed history, had a clear purpose: Shutting up the Tea Party Strong Dollar contingent forever – or at least for the time being.
The Obama-ites are going to keep on stimulating like crazy right through the election. They are not going to make the silly mistake Senator McCain and his (very bad) advisors made in 2008, by thinking that what Americans care most about are lower oil prices.
Lower oil prices are way down on the list of what contributes to American consumer confidence. A thriving stock market is a TOP contributor on the list of what makes Americans confident and want to start consuming like heck again.
The Obama-ites can (easily) thwart the Tea Party Bears – despite their incessant propaganda – by sticking to what really helps the stock market: Lower Dollar, Higher Commodity Complex, Higher Gold.
A very large part of market underperformance the past few months has actually been energy stock underperformance. This greatly angers most market longs, because the energy stocks are very, very widely held. Reverse the energy stocks, and that move alone greatly helps the overall market.
And Lower Dollar also translates quickly – after any repositioning the hedge funds have to do – into better performance by retail, consumer discretionary on the whole, and very, very quickly into the performance of the big US exporters, which are also extremely widely held.
The above is a synopsis of Market versus Economy. The Market is a leading indicator which can greatly aid in economic recovery.
If the Obama-ites and their advisors stick to the mantra of Lower Dollar, Higher Commodity Complex, Higher (Just Ignore It!) Gold, they will help themselves, the economy, the general market, and market longs. They will hurt a few hedge funds, most of which are their enemies, anyway.