Long Run Explor Ltd Ord WFREF

RE:Crude oil inventories

[JohnJBond]

Thanks for sharing this information.

The most important number right now when it comes to oil is

The US weekly supply estimate (this is the US weekly oil field production number).    This number shows us the weekly production in the US, and will give the first early signs of reduced US shale oil (and by association, gas) production.

It comes out today too, but I don't think its been released yet.

Last weeks number was 9,077,000 barrels.    This is the number that has increased roughly a million barrels per year for the last three years.     This is the number that's behind the recent calls for reduced WTI price by Goldman et al.

TV reporters mention US oil inventories, but thats not a very useful number, as inventories are affected by changes to supply and consumption (and consumption is the result of refinery run rates).   When refineries shut down for maintanance, which they tend to schedule in October, oil inventories increase - not becase any more oil is being produced, but becuse less oil is being refined.    As a result the inventory number gives a false picture of actual oil production.