it is called the world reserve currency. if country A buys oil from country B the country B has to pay for the oil in U.S. dollars. that means that country B has to buy our debt and pass it on to country A. this gives the U.S. a tremendous advantage.
Liberals and liberalism have been a disaster for the human race. Every societal ill we suffer is directly traceable to them.
Well said.
Oil prices suffer biggest one-day drop in over a month despite historic fall in crude inventories
William Watts
Last Updated: Aug. 2, 2023 at 3:15 p.m. ET
Storage in focus.
Johannes Eisele/Agence France-Presse/Getty ImagesA historic drop in U.S. crude inventories wasn’t enough to lift oil futures Wednesday, with the U.S. and global benchmarks suffering their biggest one-day declines in more than a month.
Price action
- West Texas Intermediate crude for September delivery CL00, 0.28% CL.1,0.28% CLU23, 0.28% fell $1.88, or 2.3%, to end at $79.49 a barrel on the New York Mercantile Exchange.
- October Brent crude BRN00, +0.22%BRNV23, +0.22%, the global benchmark, dropped $1.71, or 2%, to settle at $83.20 a barrel on ICE Futures Europe. WTI and Brent each saw their biggest one-day percentage decline since June 27, according to Dow Jones Market Data.
- Back on Nymex, September gasoline RBU23, 0.12% fell 3.4% to $2.776 a gallon, while September heating oil HOU23, +0.34% lost 0.6%, finishing at $3.004 a gallon.
- September natural gas NGU23,+0.08% closed at $2.477 per million British thermal units, down 3.2%.
Market drivers
The Energy Information Administration on Wednesday morning reported that U.S. crude inventories dropped by more than 17 million barrels in the week ended July 28. Gasoline inventories, however, rose by nearly 1.5 million barrels, while distillate stocks fell by 800,000 barrels.Analysts surveyed by S&P Global Commodity Insights, on average, had forecast the EIA to show crude inventories fell 3.7 million barrels last week. Gasoline stocks were expected to show a drop of 1 million barrels, with distillate inventories down 400,000 barrels.
“Oil prices are falling as the macro backdrop is killing sentiment,” said Edward Moya, senior analyst for the Americas at Oanda.
A downgrade of the U.S. credit rating to AA+ from AAA by Fitch Ratings was seen as a negative for overall market sentiment. Treasury yields were on the rise as the Treasury Department detailed plans to increase supply. Rising debt yields lifted the greenback, with the ICE U.S. Dollar Index DXY up 0.3%.
See: Fitch cuts U.S. credit rating: Here’s what you need to know
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“Also weighing on oil is a strong dollar that won’t be going away anytime soon as Treasury yields surge given the increased total of debt sales that will be coming from the Treasury,” Moya told MarketWatch.
It was the combination of robust crude exports and strong refinery runs that yielded the largest draw to weekly U.S. crude inventories on record, said Matt Smith, lead oil analyst for the Americas at Kpler.
“This is very much a timing issue: peak summer refining activity has coincided with very strong end-of-month exports, and draws of such magnitude should not be expected going forward,” he said.
The American Petroleum Institute, an industry trade group, late Tuesday reported a 15 million barrel drop in U.S. crude inventories last week, according to a source citing the data, while gasoline stocks fell 1.7 million barrels and distillates were down 512,000 barrels.
The API report had signaled a large crude draw, with set up “a case of buying the rumor and selling the fact for WTI,” which headed lower after running into technical resistance, Smith said.
Meanwhile, a Bloomberg survey released Tuesday showed output by the Organization of the Petroleum Exporting Countries, or OPEC, dropped by 900,000 barrels a day in July, the lowest since 2020. Saudi Arabia led the decline with a drop of 810,000 barrels a day, bringing production to 9.15 million barrels a day.
Saudi Arabia previously announced it would extend its production cut of 1 million barrels a day through August. Many analysts said they expect it to announce later this week that the cut will continue through September.
And yet we have the oil reserves and production capabilities to be independent of foreign oil. Thus improving our standard of living, securing our freedom and countries security.
Naaaaa lets put a senile Demetia ridden old man in office and use him as a puppet to destroy everything that made this country great while he enjoys kickbacks from the ukraine and china and his son thumbs his nose at every law he can and walks free while a witch hunt continues on a former president who was working for us the people and making this country great again.
Are you really better now than from 2016-2020?
Naaaaa lets put a senile Demetia ridden old man in office and use him as a puppet to destroy everything that made this country great while he enjoys kickbacks from the ukraine and china and his son thumbs his nose at every law he can and walks free while a witch hunt continues on a former president who was working for us the people and making this country great again.
Are you really better now than from 2016-2020?
I wish liberal/ democrats would do this
$3.299 for 87 at Costco Tulsa this morning.
My old 2008 F150 with the 5.4 gets between 17-18 mpg. Good old truck. Rolled over 200,000 not to long ago.
Problem is the democrat sheep have their false religion of global warming that they are willing to destroy the country in order to supposedly save it. Fecking morons. The sky is falling. The sky is falling we have to do something.
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