With the release of today’s weekly crude oil inventory numbers, showing that crude oil stocks are 3.4% higher than the same period last year, the U.S. has an ample supply of black gold. These numbers are a little surprising given the fact that both Norway and Iran are producing less than last year. Norway missed their September production estimate by 15%. Due to the sanctions against Iran, their production is down 1 million barrels a day. The shortfall has been picked up by Saudi Arabia producing close to 10 million barrels of crude a day. This coupled with the drop in U.S. demand, which is estimated to be 2.7% lower year to year by the American Petroleum Institute. The only thing holding this market up is the geopolitical issues. The fear that Iran will discharge oil in the straits of Hormuz to disrupt oil transport is one overriding concern.
If you would like to discuss this further or any commodity market opportunities please contact me at 888-861-1548 or at TFeeney@rjofutures.com.
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