Commercial crude oil inventories in the US increase by 1.0 million barrels in the week ending November 19, the weekly report published by the US Energy Information Administration (EIA) revealed on Wednesday. This reading came in above market expectations for an inventory draw of 0.5 million barrels. However, gasoline stocks saw a slightly larger than forecast draw of 0.603 million barrels versus forecasts for a 0.5 million barrel draw. That decline took gasoline inventories to their lowest level since 2017, the EIA said. Distillate stocks also saw a larger than forecast draw of 2.0M barrels versus forecasts for a 1.0M barrel draw.
COVID will continue to spread as people mix and travel – WHO
US jobless claims down to 199,000, lowest since 1969
Weekly applications for unemployment benefit have been falling in recent weeks as employers hold on to their workforce amid a tight labor market.
Initial weekly jobless claims dropped to 199,000 last week, hitting the lowest level since 1969 and roundly beating out economists’ expectations of 260,000. Weekly applications for unemployment benefit have been falling in recent weeks as employers hold on to their workforce amid a tight labor market. The latest weekly data was released one day early, due to the Thanksgiving holiday. “Getting new claims below the 200,000 level for the first time since the pandemic began is truly significant, portraying further improvement,” said Mark Hamrick, senior economic analyst at Bankrate. “The strains associated with higher prices, shortages of supplies and available job candidates are weighed against low levels of layoffs, wage gains and a falling unemployment rate. Growth will likely be above par for the foreseeable future.” Companies across almost all sectors are struggling to find workers, holding on tight to the ones that they have, and raising wages to attract more hires. While the economy is still short around 4 million jobs, compared to pre-pandemic levels, 531,000 jobs were added in October, according to the latest monthly employment report from the Bureau of Labor Statistics. The unemployment rate fell to 4.6 percent, down from 4.8 percent.
Japan to release a few hundred thousand kilolitres of oil from reserve
TOKYO (Reuters) – Japan will release a few hundred thousand kilolitres of oil from its national reserve, but the timing of the sale has not been made, the country’s industry minister, Koichi Hagiuda, told reporters on Wednesday. Japan’s Prime Minister Fumio Kishida said earlier that his government would release some oil reserves, after a U.S. request, in a way that does not breach a Japanese law, which only allows stock sales if there is a risk of supply disruption. One kilolitre is equal to 6.29 barrels of oil. Earlier the Nikkei newspaper reported that Japan will release about 4.2 million barrels of oil.
The Fed is ‘very much behind the curve’ on addressing inflation
SYDNEY–Former U.S. Treasury Secretary Larry Summers has sounded alarm bells over risks of runaway inflation in the U.S., saying the Federal Reserve is moving glacially in its efforts to counter the threat. The Fed’s traditional role is to “remove the punchbowl just before the party starts,” Mr. Summers told a Citi investment conference in via Zoom on Wednesday.
“Now the party’s gotten great and the Fed’s not removing the punchbowl until they’ve seen…conclusive evidence that everyone’s going to get plastered,” he said.
Mr. Summers said record labor shortages, 20% housing inflation, the highest oil and gasoline prices in eight years and the government involved in a major fiscal stimulus program have all been warning signs of a costly rise in inflation and inflation expectations. Amid all of this the Fed is continuing a major monetary expansion by buying bonds, he said. “I don’t think we are in a terribly rational or sound place. I think we are taking big risks,” Mr. Summers said. Rising prices shouldn’t be a surprise given that the U.S. has embarked on a fiscal stimulus program that will deliver budget deficits of 15% of GDP for an economy that had a 2% or 3% GDP gap, he added.
US to require vaccines for all travelers in January
WASHINGTON (AP) — President Joe Biden will require essential, nonresident travelers crossing U.S. land borders, such as truck drivers, government and emergency response officials, to be fully vaccinated beginning on Jan. 22, the administration planned to announce. A senior administration official said the requirement, which the White House previewed in October, brings the rules for essential travelers in line with those that took effect earlier this month for leisure travelers, when the U.S. reopened its borders to fully vaccinated individuals. Essential travelers entering by ferry will also be required to be fully vaccinated by the same date, the official said. The official spoke to The Associated Press on the condition of anonymity to preview the announcement. The rules pertain to non-U.S. nationals. American citizens and permanent residents may still enter the U.S. regardless of their vaccination status, but face additional testing hurdles because officials believe they more easily contract and spread COVID-19 and in order to encourage them to get a shot. The Biden administration pushed back the requirement for essential travelers by more than two months from when it went into effect on Nov. 8 for non-essential visitors to prevent disruptions, particularly among truck drivers who are vital to North American trade. While most cross-border traffic was shut down in the earliest days of the pandemic, essential travelers have been able to transit unimpeded. Even with the delay, though, Norita Taylor, spokeswoman for the trucking group Owner-Operator Independent Drivers Association, criticized the vaccination requirement, calling it an example of “how unnecessary government mandates can force experienced owner-operators and independent truckers out of business.” “These requirements are another example of how impractical regulations will send safe drivers off the road,” she said. The latest deadline is beyond the point by which the Biden administration hopes to have large businesses require their employees to be vaccinated or tested weekly under an emergency regulation issued by the Occupational Health and Safety Administration. That rule is now delayed by litigation, but the White House has encouraged businesses to implement their own mandates regardless of the federal requirement with the aim of boosting vaccination. About 47 million adults in the U.S. remain unvaccinated, according to figures from the Centers for Disease Control and Prevention. NN: Its an established fact that fully vaccinated (3shots) people are not at risk even to the new strands. But reality is the vast majority of people are not fully vaccinated. and And AND infections, hospitalizations and deaths are rising at an alarming rate in Asia, Europe and America. Instead of getting ahead of this its chaos. With failed mandates, mixed messaging and the politicians and the FDA and CDC at cross purposes. Its obvious you must take matters in your own hands. This holiday season will end in disaster… Million and millions will die.
Crude Oil Inventory Build Follows Announcement Of SPR Release
The American Petroleum Institute (API) reported an inventory build in crude oil. This week, the API estimated the inventory build for crude oil to be 2.307 million barrels. U.S. crude inventories are now 57 million barrels below where they were at the beginning of the year.
Analyst expectations for the week were for a draw of 950,000 barrels for the week. In the previous week, the API reported a build in oil inventories of 655,000 barrels, compared to the 1.550-million-barrel build that analysts had predicted. Oil prices had been trading up on Tuesday in the run-up to the data release, even after the White House announced that it would release 50 million barrels of crude oil from the SPR to tackle high gasoline prices. But with WTI rising to $78.85 and Brent trading at $82.43 per barrel. WTI was down more than $2 week on week at 1:52 p.m. EST, while Brent was essentially flat for the week. U.S. oil production for the week ending November 12—the last week for which the Energy Information Administration has provided data—slipped back to 11.4 million bpd—1.7 million bpd below the all-time pre-pandemic high of 13.1 million bpd. The API reported a build in gasoline inventories of 600,000 barrels for the week ending November 19—after the previous week’s 2.792-million-barrel draw, as high gasoline prices in the United States continue to draw attention. Distillate stocks saw a decrease in inventories of 1.5 million barrels for the week, after week’s 107,000-barrel increase. WTI was trading up 2.36% at 4:53 p.m. at $78.56 per barrel. NN: The big story here is for the first time in decades governments are taking on OPEC. The oil cartel has misread the tea leaves. Governments know after years of restrictions and lockdowns the natives are restless…..
Biden oil reserves bet melds China outreach with appeal to U.S. voters
WASHINGTON (Reuters) – President Joe Biden’s historic move to release oil from strategic reserves in coordination with big nations including China represents a unique bet that finding common ground with the United States’ biggest economic rival can help dampen fuel prices for middle class Americans. The move, announced by the U.S. on Tuesday, underscores the complicated relationship Biden is trying to craft with China as he seeks agreement on key issues like climate change and trade, while linked in an economic arms race. The rare moment of cooperation comes as inflation, and especially high gasoline prices, eat at Biden’s popularity at home. “This is a new era of oil diplomacy for the U.S. to coordinate with India and China” said Daniel Yergin, an oil historian and the vice chairman of IHS Markit. Cooperation with China is likely to stick to energy and environment. “Climate and energy are in a separate category from all the tough issues that need to be dealt with between the two countries,” Yergin said. The Biden administration’s diplomatic inroads with China first surfaced in Glasgow, Scotland this month where the two countries hammered out a surprise deal on boosting action on climate change including reducing emissions of methane, a powerful greenhouse gas. “Glasgow showed that there is some level of common interest and diplomacy that can be successful between the United States and China,” said Amy Myers Jaffee, a research professor at Tufts University and expert on global energy markets and climate. Jaffee said both countries recognized the importance of a global climate agreement. “I would say ‘Ditto’ on the oil market,” Jaffee said. Washington has stark differences with Beijing on trade issues and human rights concerns related to Xinjiang, Hong Kong, Tibet and Taiwan. But the world’s top two economies would benefit from energy cooperation given their adversarial relations with Saudi Arabia and Russia in terms of keeping oil prices low for consumers. Combined, the United States and China consume nearly 35 million barrels of oil a day, more than a third of global demand. Even though the United States has become one of the world’s largest oil producers, it is still the second-largest importer of crude, trailing only China. U.S. gas prices at seven-year high U.S. gas prices at seven-year high https://graphics.reuters.com/USA-GASOLINE/PRICES/znvnekmrbpl/chart.png The world’s top oil-importing nations https://graphics.reuters.com/GLOBAL-OI/lbpgnbezdvq/chart.png China now imports more than 10 million barrels of oil a day, The United States imports about 6 million barrels per day, though in recent years it has sharply reduced its dependency on OPEC producers, with most of its imports now from Canada. While China did not announce an oil tap on Tuesday, Biden spoke earlier with China’s President Xi Jinping about opening their reserves and Chinese officials said on Nov. 18 they are working on a release. China held the first ever release of oil from its reserve in September, which aimed to stabilize prices. The broader group of countries that have elected to work with the United States and release oil from their reserves include other large importers, including India, Japan and South Korea, which rank third, fourth and fifth, respectively. U.S. oil prices hit a seven-year high in late October driving inflation and hitting Biden’s approval rating ahead of midterm elections next year. With razor thin majorities in both chambers of Congress, Biden’s fellow Democrats can ill afford to lose seats in 2022. Biden could take additional action in coordinating with other countries to maintain supply as the COVID-19 pandemic eases, the White House in a statement Tuesday. Actually doing so may not be easy. “Not only could U.S.-China tensions complicate further cooperation, but the U.S. stands apart from other strategic reserve holders in that its legislature has ordered the selling off of strategic stockpiles” to finance government programs, ClearView Energy Partners, a nonpartisan research group, said in a note to clients. Some 18 million barrels of the U.S. release was simply a front-loading of required sales that were mandated by Congress in recent years. There’s a risk that consumer countries and producing countries could keep upping the ante with opposing announcements on global oil supplies, a prospect that would likely make oil prices even more volatile, or what Yergin calls a “bloc versus bloc,” scenario. But in the short term, the action by consuming countries is likely to put pressure on oil prices, Yergin said. “This also comes at a time when the supply/demand balance is on a course to improve over the next few months, and this oil deal will add to that. What it means at least for now is you’ll hear a lot fewer predictions about $100 oil.” NN: Although you could not tell it by the $3 rally in oil this is a big deal, Its the birth of OCIC…the organization of Oil Consuming and Importing Countries OCIC. And OPEC will live to regret this latest manipulation. See everyone country may not have oil. But they all have sun, wind, coal and nuclear reactors. And elective cars put a dent in oil and refined oil products demand. Transportation fuels are the mainstay of oil consumption…. Previously their was no non fossil fuel personal vehicle alternative. Even a 10% additional uptake in Electric vehicles will destabilize oil demand and refinery utilization. Electric cars are not worth a shit in the rural world where trips are long distances. But they are the ideal solution for urban transportation. For decades light rail used to move people have been electric.
Fauci says vast majority of vaccinated Americans should get a COVID-19 booster
NEW YORK, Nov 23 (Reuters) – Top U.S. infectious disease official Dr. Anthony Fauci said on Tuesday the vast majority of Americans who have been vaccinated against COVID-19 should receive a booster shot, and that an additional dose could eventually become the country’s standard for determining who is fully vaccinated. Fauci and other disease experts have said they expect that COVID-19 will transition this spring from a pandemic phase in the United States to an endemic disease, meaning that the virus will continue to circulate at a lower level, causing smaller, less disruptive but still significant outbreaks in the coming years. But some are expressing new concern over a rise in U.S. infections in recent weeks, a trend that is likely to accelerate as more Americans travel and gather for U.S. Thanksgiving this week and other upcoming holidays. “We’d like to get as many people who were originally vaccinated with the first regimen boosted,” Fauci said in an interview for the upcoming Reuters Next conference. Asked to quantify, he said, the “overwhelming majority” of Americans who have been fully vaccinated should now receive a COVID-19 booster shot based on data showing they provide “substantial” protection beyond what is seen from the original inoculation. To date, about 33 million Americans have received a booster dose. The government recently expanded eligibility for an additional shot to all U.S. adults. Studies from Israel and other countries have shown that vaccine protection wanes over time. While data first suggested that was mostly a problem in the elderly, there is newer evidence that it occurs among all age groups, Fauci said. “That’s the reason why we’re very keen on getting as many people who are originally vaccinated to get a booster … because they really do work,” he said. As experience with COVID-19 vaccines grows, it is conceivable that the definition of a “full and complete regimen” in the United States would comprise three doses of the mRNA vaccines from Pfizer (PFE.N)/BioNTech and Moderna (MRNA.O) and two doses of the Johnson & Johnson (JNJ.N) vaccine, he said, similar to what some other countries have done.
“Right now, officially, fully vaccinated equals two shots of the mRNA and one shot of the J&J, but without a doubt that could change,” he said. “That’s on the table for discussion.”
As for the rollout of COVID-19 vaccines for children ages 5 to 11, which started with the Pfizer/BioNTech vaccine earlier this month, Fauci said there is no sign of any new safety issues. “There is no signal at all,” Fauci said. At least 10% of the 28 million eligible children have gotten a first dose, Jeff Zients, the White House coronavirus coordinator, said on Monday. Fauci said people need to realize that no vaccine is completely without side effects. But when you consider the risks of COVID-19 compared to the very rare risk of an adverse event in a child, “overwhelmingly … the benefit far, far outweighs the risk.” Asked whether he might consider retiring any time soon, the 80-year-old immunologist who heads the U.S. National Institute of Allergy and Infectious Diseases, said, “I’m not even remotely contemplating that right now.” Fauci said he still wants to see the end of COVID-19 as a pandemic, and he also wants to see progress on ending the HIV/AIDS pandemic, to which he has devoted much of his career. “There’s a lot of unfinished business right now, so I’m not even thinking about walking away.” NN: What took the assholes so long to figure it out. Like 4 months to late………
Oil rises 3% to one-week high after U.S. taps emergency reserves
NEW YORK (Reuters) – Oil prices rose to a one-week high on Tuesday after a move by the United States and other consumer nations to release tens of millions of barrels of oil from reserves to try to cool the market fell short of some expectations. The United States said on Tuesday it would release millions of barrels of oil from strategic reserves in coordination with China, India, South Korea, Japan and Britain, to try to cool prices after OPEC+ producers repeatedly ignored calls for more crude. But analysts said the effect on prices was likely to be short-lived after years of declining investment and a strong global recovery from the COVID-19 pandemic. Brent futures rose $2.65, or 3.3%, to $82.35 a barrel by 12:52 p.m. EST (1752 GMT), while U.S. West Texas Intermediate (WTI) crude rose $1.91m, or 2.5%, to $78.66. That puts Brent on track for its biggest daily percentage gain since August and its highest close since Nov. 16. It also pushed Brent’s premium over WTI to its highest since mid-October. Talk of a coordinated reserves release, a strong U.S. dollar and a potential hit to energy demand from a fourth wave of COVID-19 cases in Europe has already caused Brent prices to drop over 10% since hitting a three-year high of $86.70 on Oct. 25. President Joe Biden’s administration said it would release 50 million barrels from the U.S. Strategic Petroleum Reserve (SPR), which will start hitting the market in mid to late December. “History has proven that the release will only have a short-term impact on prices and is an open declaration of an oil war with the OPEC+ cartel,” said Phil Flynn, senior analyst at Price Futures in Chicago. The OPEC+ alliance between the Organization of the Petroleum Exporting Countries and allies including Russia has so far rebuffed repeated requests from Washington to pump more oil. The United Arab Emirates Energy Minister Suhail Al-Mazrouei said on Tuesday the UAE saw “no logic” in increasing its own contributions to global markets at the moment, adding technical data gathered ahead of an upcoming OPEC+ meeting in December pointed to an oil surplus in the first quarter of 2022. In addition to the front-month, the WTI forward curve for 2022 declined by almost 7% since hitting a recent high of $76.59 in late October in anticipation of more supply down the road. “We … expect a flattening of the curve, as parts of the SPR release will need to be replenished again down the line, although spread out over time,” said Bjornar Tonhaugen, head of oil markets at Rystad Energy. The oil rally came ahead of U.S. inventory reports from the American Petroleum Institute (API), an industry group, on Tuesday and the U.S. Energy Information Administration on Wednesday. Analysts expect the latest weekly U.S. oil inventory data to show a 1.0 million barrel draw from crude stocks. The dollar index, meanwhile, held near a 16-month high on Tuesday after Federal Reserve Chair Jerome Powell was picked for a second term, reinforcing market expectations that U.S. interest rates will rise in 2022. A stronger dollar makes oil more expensive for holders of other currencies, which traders said was weighing on crude prices.