{"id":19100,"date":"2016-03-23T13:43:59","date_gmt":"2016-03-23T18:43:59","guid":{"rendered":"http:\/\/olduvai.ca\/?p=19100"},"modified":"2016-03-23T13:43:59","modified_gmt":"2016-03-23T18:43:59","slug":"oil-prices-fall-fast-on-huge-inventory-build","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=19100","title":{"rendered":"Oil Prices Fall Fast On Huge Inventory Build"},"content":{"rendered":"<h3><a href=\"http:\/\/oilprice.com\/Energy\/Energy-General\/Oil-Prices-Fall-Fast-On-Huge-Inventory-Build.html\" target=\"_blank\">Oil Prices Fall Fast On Huge Inventory Build<\/a><\/h3>\n<div class=\"column75-25 clear\">\n<div class=\"column75-25_1\">\n<div id=\"article-content\" class=\"wysiwyg clear\">\n<p>Two hundred and twenty-two years after Josiah G. Pierson patented the rivet machine, and the oil market remains as riveting as ever. (I\u2019m here all week, folks). After yesterday\u2019s API report gave a flourishing hat-tip towards a large build to crude stocks and a large draw to gasoline, oil is sliding amid a stronger dollar, while gasoline is pushing higher. Here are some things to consider today:<\/p>\n<p>Jumping straight into economic data, the most insights we\u2019ve had overnight have come from Brazil. Its mid-month inflation print dropped into single digits (at +9.95 percent), but still close to a 12-year high. Meanwhile, its unemployment rate jumped to 8.2 percent, its highest level in nearly 7 years.<\/p>\n<p>Economic weakness in Brazil is strongly tied to the performance of the underlying resources it is rich in. Hence, as the price of key commodities for the South American country \u2013 such as soybeans, iron ore and crude \u2013 have headed south,\u00a0<a href=\"http:\/\/clipperdata.com\/china-commodities-send-brazil-into-downward-spiral\/\">so has its economy<\/a>. As the chart below illustrates, the fate of the state-run oil company Petrobras tracks closely with oil prices. Hence as oil prices have charged lower, it is no surprise to hear this week that Petrobras has reported its biggest ever\u00a0<a href=\"http:\/\/www.bloomberg.com\/news\/articles\/2016-03-21\/petrobras-posts-surprise-loss-on-asset-writedowns-amid-oil-rout\">quarterly loss of $10 billion in Q4 of 2015<\/a>, due to asset write-downs amid falling oil prices.<\/p>\n<p><a class=\"lightbox\" href=\"https:\/\/oilprice.com\/images\/tinymce\/2016\/Smith2303A.jpg\"><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/cdn.oilprice.com\/images\/tinymce\/2016\/Copy%20of%20Smith2303A.jpg\" alt=\"\" width=\"449\" height=\"252\" \/><\/a><\/p>\n<p>(Click to enlarge)<\/p>\n<p>We have U.S. weekly inventories on deck this morning, with last night\u2019s humongous API crude build of 8.8 million barrels adjusting expectations ahead of today\u2019s number. The API report also yielded a large 4.3 million barrel draw to gasoline stocks, pointing to a drop in refinery utilization (read: refinery maintenance) amid destocking from the winter to the summer blend. As\u00a0<a href=\"http:\/\/clipperdata.com\/geopolitical-concerns-send-oil-prices-lower\/\">we mentioned yesterday,<\/a>\u00a0our ClipperData showed strong crude imports last week amid a wealth of waterborne arrivals into the U.S. Gulf, tipping us off to a crude build.<\/p>\n<p>&#8230;click on the above link to read the rest of the article&#8230;<\/p>\n<\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Oil Prices Fall Fast On Huge Inventory Build Two hundred and twenty-two years after Josiah G. Pierson patented the rivet machine, and the oil market remains as riveting as ever. (I\u2019m here all week, folks). After yesterday\u2019s API report gave a flourishing hat-tip towards a large build to crude stocks and a large draw to [&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":[11619,12307,2245,594,4044,5332],"class_list":["post-19100","post","type-post","status-publish","format-standard","hentry","category-energy-2","tag-matt-smith","tag-oil-inventory","tag-oil-market","tag-oil-prices","tag-oil-storage","tag-oilprice-com"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/19100","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=19100"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/19100\/revisions"}],"predecessor-version":[{"id":19101,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/19100\/revisions\/19101"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=19100"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=19100"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=19100"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}