KFG Resources Ltd. V.KFG

Energy

KFG Resources Ltd is a North American based company. It is primarily engaged in the production of crude oil and natural gas in the United States. It has developed onshore oil and gas reserves with activities concentrated in Concordia, Catahoula Parishes, Louisiana, Wilkinson Counties, Mississippi, Comanche County and, Kansas. Also, the company is focused on participating in the drilling of shallow wells in north-central Texas.

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KFG Resources Ltd. > KFG Q2 Numbers Out Tonight, Another Profit For The Quarter

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Comment by freedom-1970on Dec 20, 2018 10:03pm

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Post# 29144262

RE:KFG Q2 Numbers Out Tonight, Another Profit For The Quarter

Today’s data was very supportive for crude prices. On the bullish side:

Commercial crude stocks fell 0.5Mb
Distillate fuel stocks fell 4.2Mb as cold weather increased usage.
- Overall stocks fell by 10.3Mb (excluding the SPR) and 10.7Mb including the SPR.
- (**) Product supplied or used was up by 848Kb/d to 22.3Mb/d. This is up 1.8Mb/d in just the last two weeks. Proof of strong winter demand - which is up 8.8% in just two weeks.
- Gasoline consumption rose by 208Kb/d to 9.24Mb/d.
- Distillate oil demand rose by 418Kb/d on the week to 4.89Mb/d, and is up 849Kb/d or 21% in just two weeks.
There was only one item for energy bears:

• Gasoline inventories rose by 1.8Mb as refiners build up winter grade product. Refiners worked at 95.4% of capacity up from 95.1% last week and 94.1% last year.

It appears that yesterdays plunge in crude prices was due to disorderly hedge and commodity fund margin call liquidation. We may see more of this if there is a general stock market plunge. However we are getting near the end of this liquidation as fund long holdings are falling. The price of WTI should move over US$50/b in early January if this liquidation is over by then and demand continues at its current strong winter pace.