NB: this story is full of blatant inaccuracies and critical information left out. My bulllsit alarm bells were sounding. So i will point out the BullShit by putting my notes in red proceeded by: BS
HOUSTON, Dec 21 (Reuters) – Oil prices rose by more than $2 on Wednesday after data showed a larger-than-expected draw in U.S. crude stockpiles, but gains were capped by a snowstorm that is expected to hit U.S. travel. U.S. crude inventories fell by 5.89 million barrels, according to data from the U.S. Energy Information Administration (EIA), BS: They forgot to mention All of the inventory drop was caused by the shutdown in the keystone pipeline system… See next story. compared with estimates for a drop of 1.66 million barrels. Data from the American Petroleum Institute on Tuesday showed a 3.1 million barrel draw in the week to Dec. 16, market sources said. “This report is very bullish, especially with the fact that there’s a draw from the crude oil equation and distillate inventories stopped their streak of builds ahead of the cold blast,” said Phil Flynn, analyst at Price Futures group. BS: A cold blast stops travel with roads and airports shut down. Oil consumption DROPS in a cold blast Distillate inventories fell by 242,000 barrels, according to EIA data, compared with analyst estimates for a build of 336,000 barrels. Markets also awaited clarity on when the Keystone pipeline, a major artery ferrying Canadian crude to the United States would restart (BS: The pipe line was restarted before this story was published!!!!) after TC Energy (TRP.TO) said it had removed the ruptured segment of the pipeline that caused an oil spill earlier this month and sent it for metallurgical testing as directed by U.S. regulators. BS: What they forgot to mention was the entire pipeline system was ordered shut down not just the section where the break occupied. Did they tell you the pipeline was sabotaged…. Prices were also boosted by hopes that China would relax some COVID-19 curbs after no new COVID-19 deaths were reported. BS: what they lies about is the fact that factories and cities are shutting down across China. Beijing is a ghost town. The relaxing of COVID restrictions has caused the biggest COVID infection shutdown yet. With record breaking deaths. China’s crude oil imports from Russia in November rose 17% year on year as Chinese refiners rushed to secure more cargoes ahead of a price cap imposed by the Group of Seven nations and an EU embargo from Dec. 5. BS: What they forgot to tell you again is the fact ALL the additional imports and more were not consumed by China. Domestic Consumption has been dropping for months. China has taken advantage of the discounted oil it is receiving from Russia and refining said oil and exporting it into Europe and even the US as distillates. Meanwhile, Saudi Arabia’s energy minister said on Tuesday that the heavily criticized move by OPEC+ to cut oil output turned out to be the right decision. The comments suggest that OPEC+ may continue to keep supply tight, said CMC Markets analyst Tina Teng. BS: Reality is OPEC has initiated only half the proposed cuts. And the slightly reduced production was due to technical production problems by some members. This was offset by increased exports by Venezuel and Iran circumventing US sanctions. Potentially curtailing oil demand, huge parts of the United States are forecast to face heavy snow that is likely to cause flight delays and impassable roads during one of the busiest travel periods of the year. BS: is it not self evident that flight delays and impassible roads it reduces oil consumption. Overall, Russian oil exports fell by 11% month on month for Dec. 1-20 after the European Union’s embargo on Russian oil came into force, BS: in fact Russian production has skyrocketed in preparation for sanctions. and 300 million barrels has been loaded on ships (not counted as exports) and the oil is arriving in India and China as we speak. the Kommersant daily reported. NN: Welcome to my world!
Keystone Pipeline open again, but leaky section in Kansas still shut down
For the first time in over a week, crude oil is flowing again through most of the 2,687-mile Keystone Pipeline, but a section of the conduit in Kansas that leaked nearly 600,000 gallons remained shut off as an investigation of what caused the damage continues, officials said. TC Energy, the Canadian operator of the aboveground pipeline, announced Wednesday evening it is resuming operations of the system that was unaffected by the spill last week in Washington County, Kansas. “The affected segment of the Keystone Pipeline System remains safely isolated as investigation, recovery, repair and remediation continue to advance,” the company said in a statement Thursday morning. The company said it is “safely restarting” the section of the pipeline running from Canada to Patoka, Illinois. “This restart facilitates safe transportation of the energy that customers and North Americans rely on,” TC Energy said in its statement. At full operation, the pipeline normally pumps about 622,000 barrels, or more than 26 million gallons of oil per day from Alberta, Canada, to refineries in Texas, Illinois and Oklahoma. A barrel of oil is equivalent to 42 gallons, or about the size of a typical bathtub, according to industry standards. The pipeline’s damaged “Cushing Extension” which runs from Washington County to Cushing, Oklahoma, remained closed Thursday as the investigation and cleanup goes on, the company said. The Pipeline and Hazardous Materials Safety Administration, a division of the U.S. Department of Transportation, must grant regulatory approval before the Cushing Extension can reopen, according to the company. The leak in Kansas was first detected just after 9 p.m. on Dec. 7, about 20 miles south of a pipeline’s Steele City, Nebraska, terminal. The leak in the 36-inch diameter pipeline spilled down a hill and into Mill Creek in Washington County, prompting TC Energy to shut down the entire line.
NN: The entire Keystone pipeline system was shut down for 15 days. Take the capacity 622,000 BPD and multiply that lost oil by 20 days and you get 12,440,000 barrels of oil not lost, but stuck in Canada. I guess you can say we solved the mystery behind the missing oil. And the inventory drawn down of close to 6,000,000 reported was not increased consumption by simply due to the TEMPORARY shut down of the Keystone pipeline. Ans that oil will soon be restored to inventory. And most of the system has been restarted with the exception of the spur to Cushing Oklahoma which is expected to restart next week. You mean to tel me that ALL those “SMART” people forgot to mention this critical piece of information… REALLY!