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API Reports Significant Crude Oil Draw, Small Gasoline Build

August 29, 2017 Julianne Geiger 0

The American Petroleum Institute (API) reported a major draw of 5.78 million barrels in United States crude oil inventories, compared to analyst expectations of a draw of 1.75 million barrels for the week ending August 25. Gasoline inventories rose by 476,000 barrels for the week ending August 25. Crude prices fell on Monday and Tuesday as traders fear crude oil inventories will rise as Hurricane Harvey takes offline refining capacity in the United States, potentially for weeks until refineries are back running at full capacity. Although there…

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API Reports Significant Crude Oil Draw, Small Gasoline Build

August 29, 2017 Julianne Geiger 0

The American Petroleum Institute (API) reported a major draw of 5.78 million barrels in United States crude oil inventories, compared to analyst expectations of a draw of 1.75 million barrels for the week ending August 25. Gasoline inventories rose by 476,000 barrels for the week ending August 25. Crude prices fell on Monday and Tuesday as traders fear crude oil inventories will rise as Hurricane Harvey takes offline refining capacity in the United States, potentially for weeks until refineries are back running at full capacity. Although there…

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Lower-For-Longer Drives Leadership Shift In Big Oil

August 29, 2017 Irina Slav 0

When the Wall Street Journal last week reported that Chevron’s chief executive John Watson would step down, the most likely replacement as a “new leadership for a changing oil world” was thought to be vice chairman Michael Wirth. Wirth’s background in refining and his experience in cost efficiency improvement, according to unnamed sources from the company, had tipped the scales. According to a Goldman Sachs note to investors, Chevron’s move is the latest sign that the oil and gas industry is making cost discipline…

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RBOB Stable at 2-Year Highs After Big Crude Draw, Surprise Gasoline Build

August 29, 2017 Tyler Durden 0

RBOB gasoline closes at a 2-year high (and WTI tested down to a $45 handle) as all attention is focused on the duration and impact of the storm (and how long refineries will be closed). Tonight’s API data should not be market-moving since it relates to data from before Harvey but showed a big crude draw and modest (surprising) gasoline build once again.

 

API

  • Crude -5.78mm (-1.75mm exp)
  • Cushing +582k (+200k exp)
  • Gasoline +476k (unch exp)
  • Distillates -486k

Big crude draw and surprising gasoline build repeats a pattern we have been seeing for a few weeks…

 

“Concerns remain over the duration of the storm and how long these refinery outages will last, ” Rob Thummel, managing director and portfolio manager at Tortoise Capital Advisors, which manages $16 billion in energy-related assets, tells Bloomberg.

Motiva, the largest U.S. refinery, is running at 60% capacity; Valero Port Arthur is said to shut 2 units, while Exxon Beaumont is said to shut on flooding and Marathon Galveston Bay is also said shutting on storm issues.

“If you are going to reduce the rates of the U.S.’s largest refinery, that will have an impact,” Thummel warns.

Frankly, tonight’s API data should not move markets as the impact of storm massively dominates the marginal shift in inventory estimates… but of course, the machines will want to push the market around. WTI limped higher and RBOB barely budged.

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Houston Warns Bridges And Roads Are “Starting To Fail”

August 29, 2017 Tyler Durden 0

As Tropical Storm Harvey heads back inland, slamming southwest Texas with another 15-25 inches of rain, Housting officials are reporting that the city’s critical infrastructure is starting to fail under the weight of the floodwaters, and may soon collapse.

According to Reuters, roads and bridges in Houston have started to buckle under the impact of the catastrophic flooding in parts of the city. According to Jeff Linder of the Harris County Flood Control District, one bridge had collapsed and some roads had been damaged by the torrential rains.

Worse, the damage is far from over. As reported yesterday, the water levels at two reservoirs to the west of the city, where more than 3,000 homes have been flooded, continue to rise. Meanwhile, Buffalo Bayou, the primary drainage system that runs through the city, is holding steady and may not recede for days, said Edmond Russo, deputy engineer with the US Army Corps of Engineers. According to USGS data, the Buffalo Bayou has recorded a record 33 inches of rain, and another 20 is expected in the coming 48 hours.

Graph of

Linder said the level of the Houston Ship Channel, which opens out into Galveston Bay was “at levels we’ve never seen before”, slowing the bayou’s ability to drain. Two major dams outside Houston have also begun to overflow, according to the BBC.

Houston Mayor Sylvester Turner confirmed that one police officer has been killed since the flooding began. The Houston police chief says the officer’s body was recovered Tuesday morning. He apparently died when floodwaters overcame his vehicle as he tried to get to his post.

Perez “died in trying.” RIP, sergeant. Houston thanks you and mourns all who have died in #HarveyFlood.

— Sylvester Turner (@SylvesterTurner) August 29, 2017

Meanwhile, the Port of Houston is reporting that all facilities will remain closed on Wednesday, leaving oil tankers carrying an estimated 17 million barrels of crude oil stranded off shore with their cargo.

All Port Houston facilities will remain closed on Wednesday, August 30th due to the weather impact accross Houston. pic.twitter.com/6V3CKSYHSy

— Port Houston (@Port_Houston) August 29, 2017

At least nine people have died as a result of the flooding, including six members of one family.

 

Floodwaters have swept away some of the concrete barrier at the San Jacinto Bridge…

Floodwaters Sweep Freeway Concrete Barrier Away At San Jacinto Bridge (#Houston) pic.twitter.com/0NMxuSU2yP

— Breaking911 (@Breaking911) August 29, 2017

Finally, recall last night’s dire prediction by one engineer on twitter.

If he is right, the dire forecast by Imperial Capital analyst David Havens who predicted that the final Harvey cost would surpass $100 billion, or 3 times more than what most believe the Harvey damages will amount to, will prove to be pleasantly optimistic in retrospect.

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Harvey threatens to choke off supply of critical chemicals, plastics to US manufacturers

August 29, 2017 crude oil 0

Tropical Storm Harvey caused outages at petrochemical plants that could reverberate through the U.S. supply chain.

crude oilThe post Harvey threatens to choke off supply of critical chemicals, plastics to US manufacturers appeared first on crude-oil.n…

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‘Traders’ Panic-Buy Stocks, Shrug Off Nuclear Armaggedon, Debt Ceiling, & Biblical Flood Fears

August 29, 2017 Tyler Durden 0

If NKorea doesn’t launch a rocket tonight, stocks may sell off tomorrow

— zerohedge (@zerohedge) August 29, 2017

Blink and you missed it…

The message from the plunge/panic protection team is clear…

 

For a few brief hours overnight – until the bell rang at 0930ET on the NYSE – investors were anxious about North Korea’s most provocative yet missile launch, the terrible flooding disaster in Texas, and lest we forget, the looming debt ceiling debacle. But all of that was instantly forgotten as the machines took control and lifted stocks higher practically all day on a sea of USDJPY-ignited momentum.

200 Point ramp in The Dow from overnight lows, but Nasdaq’s 90 point explosion is ridonculous!

Spot The Odd One Out…

 

Trannies were best on the day, followed by Nasdaq…

 

FANG Stocks soared over 2.1% off the opening lows…

 

S&P algos were utterly desperate to get it to close back above its 50DMA…but failed

 

All thanks to a triple-pump-short-squeeze…

 

Treasury yields ended the day lower but well off the lows of the day…

 

10Y Yields touched 2.08% intraday – lowest level since the election – before bouncing back to 2.14%., just above June’s 2017 low close…

 

The Dollar Index – like everything else – U-turned today at the US open – magically – elevating off lowest levels since 2014…

 

JPY and EUR were the weakest as the dollar soared back to life…

 

Just look at USDJPY!!

And it appears Kuroda’s magical hand was at play as JPY-carry pulled stocks all day…

 

WTI was lower again today (testing $45 handle) and RBOB jumping to another new high, ahead of tonight’s API data…

 

Gold ended the day lower…

 

Bitcoin surged overnight, but didn’t give much back…

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25 Oil Tankers Stuck In Gulf, Unable To Offload Due To Harvey Port Closures

August 29, 2017 Tyler Durden 0

According to ship-tracking data compiled by Bloomberg, coupled with MarineTraffic real-time tracking, at least 25 tankers carrying almost 17 million barrels of imported crude oil are drifting near Texas and Louisiana ports, unable to offload because of closures from Tropical Storm Harvey.

Source: MarineTraffic

A Bloomberg further details, 20 Aframaxes, 3 VLCCs, 2 Suezmaxes are currently waiting off Texas ports of Corpus Christi, Freeport, Texas City, Houston and Galveston, as well as off Sabine Pass and Lake Charles, Louisiana. This is three more than the 22 ships that were “drifting” on August 28.

Follows a description of the stuck tankers’ cargo:

  • 6m bbl Mexican crude, including Maya
  • 4m bbl Saudi oil
  • 3.3m bbl Venezuela crude
  • 2m bbl from Iraq
  • 500k bbl Castilla from Colombia
  • 500k bbl Ostra from Brazil
  • 500k bbl Bonga from Nigeria

Additionally, here is a current status update of the various ports:

Corpus Christi:

  • Port shut since Aug. 24, sees return to normal operations by Sept. 4
  • Refineries planning restarts for this week:
    • Flint Hills may restart as soon as Tuesday
    • Valero, Citgo preparing for restart
  • Oil imports via Corpus Christi in 2016 were 225.8k b/d
    • Top suppliers, according to EIA data compiled by Bloomberg:
    • Venezuela 31%
    • Saudi Arabia 18%
    • Iraq 13%

Freeport:

  • Port shut
  • Phillips 66 Sweeny (247k b/d) shut
  • Oil imports via Freeport in 2016 were 128.6k b/d, of which 98% came from Venezuela and the rest from Saudi Arabia: EIA data

Houston:

  • Port of Houston still shut, no timeline for reopening
  • Shell Deer Park (316.6k b/d capacity) shut; LyondellBasell (263.8k b/d) cuts rates; Exxon Baytown complex (560.5k b/d), Exxon Beaumont (344.6k b/d), Marathon Galveston Bay (451k b/d) in process of shutting down
  • Oil imports via Houston, largest U.S. port for imported oil, 574.7k b/d in 2016, according to EIA; top suppliers:
    • Mexico 51%
    • Saudi Arabia 15%
    • Colombia 13%

Sabine Pass:

  • Sabine pilots say pass closed since 1pm local time Friday
  • Valero Port Arthur (330k b/d) has reformer, sulfur plant down; Motiva Port Arthur (605k b/d), U.S.’s largest refinery, and Total Port Arthur (225.5k b/d) cut rates
  • Oil imports via Port Arthur in 2016 were 553.1k b/d; top suppliers:
    • Saudi Arabia 37%
    • Venezuela 24%
    • Mexico 20%

Lake Charles:

  • Port shut since Aug. 28
  • Oil imports via Lake Charles in 2016 were 267.3k b/d; top suppliers:
    • Venezuela 46%
    • Saudi Arabia 19%
    • Mexico 12%

Source: Bloomberg

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Civilian death toll rising in Syria’s Raqqa, NGO warns

August 29, 2017 Middle East Monitor 0

At least 27 civilians were killed within the last 48 hours in Syria’s Daesh-held city of Raqqa amid fierce airstrikes carried out by a US-led coalition, according to a local citizen-journalist group. Raqqa Is Being Slaughtered Silently (RBSS), which monitors human rights violations and war crimes in the city, said Tuesday on social media that the US-led coalition had carried out 133 air raids in the city over the last two days, resulting in an undetermined number of civilian deaths. “Seventeen civilians in an apartment complex in Raqqa’s White Garden district were killed by the air raids,” RBSS tweeted, noting that ten members of a single Syrian family had been among those killed. In June, the US-led anti-Daesh coalition — […]

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