API NUMBERS - BULLISH Today's API NUMBERS
OIL - DRAW - 2.025 M
GAS - DRAW - 1.138 M
Distillates - DRAW- 2.203
CUSHING - DRAW - 2.502
So the news here is oil was expected to have a build of 1.6 M
Gasoline stocks if you have been watching have been building heavily the past few weeks in around 5 M a week
So this is very bullish.
Distillates also round out for a perfect 3 for 3.
Finally storage and production. Also bullish
CUSHING DOWN AGAIN WILL WORRY EVERYBODY
ITS BELOW 30 M. It's not building it's depleting. This is beginning to be a large story , this is when it's supposed to be building like squirrels collecting nuts so to speak.
Finally. Over all production declined. 100 k to 11.5 M. Down 1.6 M from its peak.
The story is this .........DUC wells were used up to save on CAPEX so you see drill rigs being added , but to keep this leval of production with the natural declines in the Permian ext.... , and very low inventory of DUCs. Drill rigs at best that have been addded. At best will keep production range bound. Just like the Middle East and Opec plus and there inability to raise production to meet there commuted outputs , the US if it was pressed to increase production likely can't. There is a labour issue , there is the costs.
Check out DUC wells at the crash point and check it out now. All the wells they are Bringing on now are being completed and the inventory or back up is dangerously low.
Time will tell.
Some good news I thought I would tell it !!
Craig