OIL Inventories NegativeWhat is the markets thougths on the Oil stocks ( this is the stockpiles of oil )
- One view is that the change in petroleum stocks is negative for WTI crude oil prices. U.S crude oil stockpiles decreased by -1.7 mmbbls to 453.6 mmbbls while total liquids stocks increased by +0.1 mmbbls to 816.9 mmbbls.
- Cushing stocks were unchanged at 57.1 mmbbls. NYMEX WTI near month traded down from US$43.39/bbl to US$43.19/bbl immediately following the release. U.S crude production decreased by 70 mbbls/d to 9.395 mmbbls/d. At this time Crude is trading up at approximately $43.37.
Each Brokerage firm will have this information. If an advisor is handling an investors account, they may be evaluating their clients holdings based on this new data. What is the NPV of the wells being drilled based on the current commodity prices. If investors are not being called compliance for the firms may begin to ask why. I would be interested to see how many investors have signed off that they are sophisticated and fully understand the risks in this current commodity price market. This question will be asked on many companies not just this one, to be fair.