 鲜花( 21)  鸡蛋( 0)
|
Another Big Reason to Think Oil Prices Aren't Going Up Soon# D) E) x) s1 l' I* H
( y# }5 W# D; Q: Oby Tom Randall9 r7 @, w9 Y3 }, U; H
6 U' W- b$ s$ P4 A1 e) GOil just had its first weekly decline in a month, breaking a rally in crude prices. A bit of context: After what's happened over the last year, "rally" seems a bit of an overstatement.
Q- |* l1 ]3 s2 q; O% H! M9 k# GOil 'Rally'4 @( \3 |& B" Q9 B) }& Q: r
% `9 G* N# w& `6 q1 h' D
One big factor that may be driving prices down this week: The U.S. is pumping so much oil it's running out of places to stash it. 5 v6 t" Q0 x+ P2 E+ C7 j
Crude oil in storage in the U.S. has jumped to the highest levels in at least 80 years, according to a Bloomberg Industries analysis. The EIA this week reported that U.S. inventories rose 7.7 million barrels to 425.6 million. That's more than 20 percent higher than the five-year average.
% A+ }; x* \- W7 jU.S. Oil Inventories Reach 80-Year High
( F0 Q7 K1 w" i5 W" z; y8 j 9 d f! O. e7 ]( v8 y% B
The buildup of supply has been "colossal" and is responsible for oil prices falling this week, Thomas Finlon, director of Energy Analytics Group LLC, told Bloomberg News. . W! p3 C0 _( U; T$ R
Winter weather and refinery outages have contributed to the supply glut. Even when those conditions subside, topped-out inventories and continued production growth may continue to suppress oil prices for the near- and medium-term, according to Bloomberg Industries.
' J6 o. Q9 J0 ?0 K7 ?Meanwhile, the U.S. is pumping oil at a faster pace than any time since 1972.
1 F$ D* ^( i; Z: I q N) @+ _
; ^! t$ J( J; NU.S. oil production since 1983. Source: EIA
; ^! V% R+ H- G1 a& L
& m" e1 C5 J7 s' ~8 x+ f5 C9 S7 b) a |
|