{"id":13581,"date":"2015-10-20T06:10:27","date_gmt":"2015-10-20T11:10:27","guid":{"rendered":"http:\/\/olduvai.ca\/?p=13581"},"modified":"2015-10-20T06:10:54","modified_gmt":"2015-10-20T11:10:54","slug":"saudi-us-oil-inventories-hit-record-high-as-demand-fizzles","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=13581","title":{"rendered":"Saudi, US Oil Inventories Hit Record High as Demand Fizzles"},"content":{"rendered":"<header>\n<h3 class=\"entry-title\"><a href=\"http:\/\/wolfstreet.com\/2015\/10\/19\/saudi-us-oil-inventories-hit-record-high-as-demand-fizzles\/\" target=\"_blank\">Saudi, US Oil Inventories Hit Record High as Demand Fizzles<\/a><\/h3>\n<p class=\"entry-meta\">The amount of oil in storage globally, not including the various \u201cstrategic petroleum reserves\u201d in the US, China, Europe, Japan, and other locations, has grown to staggering proportions this year, as oversupply drowns out tepid demand.<\/p>\n<\/header>\n<div class=\"entry-content\">\n<p>In the US, oil storage is seasonal. A big buildup starting late fall gets Americans and their favorite gas or diesel sipping or guzzling toys or clunkers through \u201cdriving season\u201d \u2013 late spring and summer \u2013 when somehow everyone has to drive somewhere. After driving season, petroleum stocks fall. This pattern has played out this year as well, but with a difference.<\/p>\n<p>Last week, the EIA reported that crude oil stocks rose 7.6 million barrels to 468.6 million barrels, the highest for this time of the year since records have been kept. Crude oil stocks are now 98 million barrels higher than they were last year at this time, when they were already bouncing into the upper end of the 5-year range.<\/p>\n<p>This chart from the EIA shows the out-of-whack relationship between the five-year range (gray area) and the weekly buildup (blue line) this time around:<\/p>\n<p><a class=\"image-anchor\" href=\"http:\/\/wolfstreet.com\/wp-content\/uploads\/2015\/10\/US-crude-oil-stocks_2015-10-15.png\" target=\"_blank\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-18755 size-full\" src=\"http:\/\/wolfstreet.com\/wp-content\/uploads\/2015\/10\/US-crude-oil-stocks_2015-10-15.png\" alt=\"US-crude-oil-stocks_2015-10-15\" width=\"520\" height=\"334\" \/><\/a><\/p>\n<p>Instead of getting better somehow, this situation simply got worse over driving season. At the peak of the buildup this year, crude oil stocks were 22.5% higher than a year earlier. Now they\u2019re 26.4% higher than they were\u00a0at this time last year.<\/p>\n<p>If the inventory buildup this fall, winter, and spring continues in this manner from today\u2019s much higher starting point, we can look forward to a fiasco on the storage front \u2013 and on\u00a0the pricing front. Because at this rate, by April, we\u2019ll be having oil coming out of our ears!<\/p>\n<p>But this is a global issue for producers (or conversely, an opportunity for oil consumers). Here\u2019s Saudi Arabia, which has been pumping oil at record levels to maintain its market share against Russia and\u00a0the boys from the oil patch in the US and Canada: its inventories are ballooning too.<\/p>\n<p>&#8230;click on the above link to read the rest of the article&#8230;<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Saudi, US Oil Inventories Hit Record High as Demand Fizzles The amount of oil in storage globally, not including the various \u201cstrategic petroleum reserves\u201d in the US, China, Europe, Japan, and other locations, has grown to staggering proportions this year, as oversupply drowns out tepid demand. In the US, oil storage is seasonal. A big [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[3],"tags":[103,184,251,281,1039,589,1775,595,596,4252,694,701,827,834,4254,6118],"class_list":["post-13581","post","type-post","status-publish","format-standard","hentry","category-energy-2","tag-canada","tag-crude-oil","tag-eia","tag-europe","tag-oil-consumption","tag-oil-demand","tag-oil-price-collapse","tag-oil-production","tag-oil-supply","tag-oversupply","tag-russia","tag-saudi-arabia","tag-united-states","tag-us","tag-wolf-richter","tag-wolf-street"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/13581","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=13581"}],"version-history":[{"count":2,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/13581\/revisions"}],"predecessor-version":[{"id":13583,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/13581\/revisions\/13583"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=13581"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=13581"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=13581"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}