RE:Oil vs API report tonight 1234bmth wrote: So far oil price is not responding negatively to tonight's API report and holding flat, but some oil stocks are relatively down in after hour trading.
The bnn bunch will jump all over it I'm sure but will the EIA release at 10:30 back up those numbers , could get caught in no man's land if those API numbers turn out to be more accounting correction than actual barrels . I don't sense an interest in pushing WTI lower and OPEC+ is likely to cut production quotas at their next meeting in early Feb with these prices persisting .
All this doom and gloom when the economy is still rocking along and employment is at historic highs , like it or not China is reopening and kicking that diesel economy into gear . India bought 4.25M new cars in 2022 and that economy is ripping along too . Japan is coming to Canada looking for LNG supply contracts , countries are scrambling to secure future energy supplies . Demand will continue to increase while supply has plateaued .
China has been building its reserves while Biden has sold his off for political gain . The political environment in NA leaves little incentive for additional cap ex investing , the SPR is at lows not seen in 40 years . The energy security conversation has been drowned in 221Mbbl of SPR crude , this temporary measure has only restricted options going forward . The loss of SPR barrels equates to losing 4Mbpw of production , again something that gets no press . The worlds 2 largest consumers of crude are up and running , one is motivated and one is on a mission .
For Canada , both TMX and CoastalGasLink pipelines will be up and running in Q2 which will ease some egress issues and open some doors . O&G will be needed for decades to come but none of that will matter tomorrow , although long term all this does matter . There is so much fear based on "assumed , not confirmed" rumours priced into the market , when the glass finally becomes half full buyers and volume will return with conviction .