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Subject:  Re: OT: Interesting propaganda on oil storage Date:  12/11/2015  5:37 AM
Author:  physdude Number:  15715 of 16950

Just to make this clearer - BNN responded to me directly by email as well as updated the news story with that 551 million barrel figure which contradicted the information in my email they were replying to (as well as what the EIA says too, of course). I can maybe understand it being a typo in one place but find it difficult to believe that they would make the same typo in two places.

A further point about gleaning the intentions of the analyst that I would like to make is that he came up with a very specific figure of 502 million barrels which doesn't seem to have any relation to the actual data. Coming up with specific incorrect figures through ignorance seems very odd to me. Further, this is not the only analyst making such assertions. For example, Goldman Sachs also made such assertions recently ( despite the fact that there is a very large amount of storage capacity still available not only in the US but in other places as well. Since I know that Goldman has oil trading desks that look very closely at every new EIA report that comes out, I find it very unlikely that they are ignorant of crude oil storage capacity utilization. (This is not to say that crude oil stores are not somewhat elevated but saying that storage space is running out is quite something else.)

I will one make one final point regarding the recent spate of recent news stories regarding oil storage worldwide which makes me question whether analysts and reporters are just ignorant or being misleading. For example, crude oil storage in China actually declined by a decent amount YoY according to the latest OPEC oil report ( and the storage in the EU+Norway and Japan are well within historical norms. It is only the US where stocks are elevated but this is on a level basis and not so much as a percentage of storage capacity. How this data can be interpreted to imply that crude oil storage is running out worldwide is a mystery to me. (The OPEC report does note that markets are getting concerned about spare storage capacity but does not make any statement itself to that effect which would seem to be odd considering that they would love to do so given that they are engaging in a price war except that the storage numbers in the rest of the report don't support that thesis at all.)

Since the price of oil is responsible for so many falling knives, this thread seems to be getting closer to on topic. :)
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