Oil & Gas - Energy - Commodities - Resources (OILBRENT)

[DiscoverGold]

==> Peek Into Crude oil Future Through Futures

* February 18, 2017

Following futures positions of non-commercials are as of February 14, 2017.

Crude oil: Yet another sizable buildup in U.S. crude stockpiles!

For the week of February 10, crude stocks surged 9.5 million barrels to 518.1 million barrels. This followed increase of 13.8 million barrels in the prior week. Inventory is the highest ever (data goes back to August 1982).

Gasoline stocks rose, too, by 2.8 million barrels to 259.1 million barrels – also a record (data goes back to January 1990).

Despite this massive buildup in both crude and gasoline, spot West Texas Intermediate crude hung in there on Wednesday, down 0.2 percent, with the session low bouncing off of the 50-day moving average, which is now going flat.

Refinery utilization dropped 2.3 percentage points to 85.4 percent – a 15-week low.

On the positive – if it can be labeled that – crude production inched lower, by 1,000 barrels per day to nine million b/d. Prior week was a 44-week high… Crude imports fell by 881,000 barrels per day to 8.5 mb/d. Prior week was the highest since September 2012… Distillate stocks shrank 689,000 barrels to 170.1 million barrels. Prior week was the highest since October 2010. Evidently, despite the latest drop, all these three remain elevated.

This should continue to be a roadblock to oil bulls’ attempt to break the crude out of the recent range – $54-plus on the up and $52-plus on the down. Particularly considering non-commercials are the most bullish ever even as crude inventory is at a record high!

After doubling in price from the February lows last year, spot WTI has gone sideways for 11 weeks. Odds favor the sideways action gets resolved by losing the afore-mentioned support.

Currently net long 530.4k, up 25.1k.



http://www.hedgopia.com/cot-peek-into-future-through-futures-83/

• DiscoverGold

Click on "In reply to", for Authors past commentaries