The US is pumping more oil than any country in history
US crude production has surpassed every record in history for six years in a row, the US Energy Information Administration wrote on Monday. Its latest peak reached in 2023 is unlikely to be broken by any near-term competitor, it said.Including condensate, last year's US crude production averaged 12.9 million barrels per day, eclipsing the 2019 global record of 12.3 million barrels per day.A monthly record also occurred in December, at over 13.3 million b/d. Source: business insider
Visualizing the Rise of the U.S. as Top Crude Oil Producer 🛢️
Source: Visual Capitalist
Iran seizes oil tanker involved in U.S. dispute off coast of Oman. Crude oil is up 2% on the news
-> Iran has captured an oil tanker previously involved in a Washington-Tehran dispute over carrying U.S.-sanctioned crude, state media said. -> Earlier on Thursday, the U.K. Marine Trade Operations said an unnamed tanker was boarded by armed individuals near the Gulf of Oman and appeared to change course toward Iranian waters. .> The tanker is embroiled in a dispute between Iran and the U.S. and previously surrendered Iranian crude to U.S. authorities following allegations of sanctions violations. -> Bloomberg confirmed that the Marshall Islands-flagged tanker "St Nikolas" is the vessel that was hijacked. A previous report says that St Nikolas was seized by the US last year, sailing under a different name, "Suez Rajan," for transporting unauthorized Iranian cargo. -> Empire Navigation, the vessel's operator, said the tanker was loaded with 145,000 tons of crude from the Iraqi port of Basra and was en route to Aliaga in western Turkey through the Suez Canal. It noted all communication with the vessel had been lost. -> The hijacking incident was near another chokepoint: the Hormuz Strait between Oman and Iran.
A topping pattern on crudeoil? Or simply finding support at a long-term trendline before a move higher? This one needs to be watched closely
A great chart from Frank Cappelleri thru Ryan Detrick, CMT.
With the rise of oil prices, there is currently a revival of the "commodities super-cycle thesis"...
Source: J-C Parets
Since the June bottom, crude oil, uranium, sugar and orange juice are up 20-30%. Is the risk of a second wave increasing?
Source: The Macro Guy
OIL AND THE DOLLAR SQUEEZE...
Most think oil up must be accompanied with the dollar trading down, but the latest surge in oil has taken place with the dollar squeezing hard as well. Source: TME
Crude oil prices are booming and is now up 34.5% since late June BUT THIS IS NOT JUST A SUPPLY STORY - WATCH OUT DEMAND AS WELL!!!
The OPEC+ (Saudi/Russian) production cuts are the easy culprit to blame for higher prices. They do matter. But another equally important factor is booming demand. Bloomberg uses Department of Energy data for production, imports, and inventory changes to "input" the weekly demand for crude oil. Below is a five-week average to smooth the noise. Demand is through the roof! This suggests the economy is okay (aka "no landing") as there are few if any, signs of "demand destruction." The combo OPEC+ cutting back + demand booming = 34.5% crude oil rally in 10 weeks... Is there more to come? Source: Jim Bianco
