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

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Peek Into Crude oil Future Through Futures

* February 25, 2017

Following futures positions of non-commercials are as of February 21, 2017.

Crude oil: Yet another record in U.S. crude stocks. Last week, inventory rose by 564,000 barrels to 518.7 million barrels.

The latest EIA data (week ended February 17) also showed that gasoline and distillate stocks fell – by 2.6 million barrels and 4.9 million barrels, respectively, to 256.4 million barrels and 165.1 million barrels. And this is what oil bulls latched on to Thursday, when West Texas Intermediate crude rallied 1.6 percent. That said, these stocks remain elevated. In the week ended February 10, gasoline stocks were the highest ever at 259.1 million barrels, and distillate stocks at 170.7 million barrels were the highest ever in the week ended February 3.

Last week, crude imports, too, fell – by 1.2 million barrels per day to seven-week low 7.3 mb/d.

Crude production, on the other hand, inched up 24,000 b/d to 46-week high nine mb/d. And refinery utilization dropped 1.1 percentage points to 84.3 percent. This was the lowest since April 26, 2013.

While the bulls deserve kudos to be able to ignore the negative and embrace the positive, they at the same time have not been able to convincingly break out at a time when OPEC is telling us they have 90 percent compliance.

So the grind continues on the cash – sideways for 11 weeks – even as non-commercials hold record net longs.

The weekly MACD on the cash is itching to cross under – potentially bearish.

Currently net long 569.7k, up 39.3k.



http://www.hedgopia.com/cot-peek-into-future-through-futures-84/

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