Singapore light distillate stocks rise to record high 14.7 mil barrels OPEC January Crude Output Rises on Gains From Iraq
- The United Steelworkers union, which represents employees at more than 200 U.S. refineries, terminals, pipelines and chemical plants, stopped work on Sunday at nine sites after failing to agree on a labour contract. They are demanding “Substantial pay increases”, which couldn’t come at a worse time. - The ECB is threatening to pull the plug on Greek banks if the new government reneges on the terms of its bailout programme. Greece wants its 320bn euro debt mountain cut substantially, and doesn’t want to comply with austerity measures. Signs of escalation of tension and resulting breakaway should be watched. - Euro Manufacturing PMI came out at 51 as expected, - Chinese PMI weaker, in contraction, at 49.7. - OPEC, pumped 30.91 million barrels a day in January, higher than the 30m target. - Saudi Arabia expected to cut March crude prices for Asia - SaudiAramco put on hold deep water oil and gas exploration & drilling in the Red Sea because of high costs and low crude prices. The union hasn’t called a national stoppage since 1980, when a halt lasted three months. The refineries on strike can produce 1.82 million barrels a day of fuel, about 10 percent of total U.S. capacity, data compiled by Bloomberg show. - Chevron is stopping shale gas drilling in Poland. - BP is announcing its 4th quarter results tomorrow at 7am GMT - Russia’s Rosneft will not resume drilling in Kara Sea in 2015 – sources (Reuters) - US Driller idled 94 oil rigs last week, the most since data collection commenced. - Money managers reduced their net-long positions on WTI for a second week through Jan. 27, raised short bets to the highest level since 2010, the U.S. Commodity Futures Trading Commission said in a report.
http://www.zerohedge.com/news/2015-...olfsson-warns-crude-bounce-one-more-head-fake Well there are quite a few nuggets of truth in here..
At least on the WTI curve, the 1m spreads for the rest of the year are reflecting storage, but notice how the spreads are widest in J/K, K/M & M/N all trading @ -$1.30 plus with K/M & M/N printing new highs in -$1.43 area.....then we level off as we head out to the end of the year. Is the market projecting a slack demand for storage? As we might be moving higher from here? Or maybe the breath before the plunge? Not certain on how to interpret...
Not sure what it means, I'm sure somebody will have a good answer, but I thought about possibly doing a fly for if things level back off, +jun/-Jul/-Aug/+Sep or something on the curve. Haven't really looked into it, but just a thought.
On the chart that spread has broke the downtrend to the upside, albeit hasn't shown any legs yet. edit: the 2016 condor has broken trend & Not the 2015 or immediate curve. That spread looks like its still seeking lower lows.