Following last week’s massive inventory build (and hope for improved gasoline demand), API reports another much bigger-than-expected build (Crude +9.94mm versus +3.5mm exp) and WTI and RBOB prices tumbled.
Crude +9.94mm (+3.5mm exp)
Cushing -1.27mm (+500k exp)
This wil be the 6th weekly build in a row for crude (and 3rd week of major builds)…
If the DOE data is anything loike the API data then this will be a new record for US crude inventory…
Two months ago, when looking at an alternative measure of Chinese capital outflows using SAFE data, Goldman found that contrary to official PBOC reserve data, “China’s Capital Outflows Are Soaring Again”, having hit $78 billion in September.
Over the weekend, and following the latest PBOC data which revealed an outflow of $56 billion in November (which was only $34 billion when FX adjusted), Goldman repeated its FX flow calculation using SAFE data, and found the China continues to mask the full extent of its outflows, which in November spiked to $69 billion, and that “since June, this data has continued to suggest significantly larger FX sales by the PBOC than is implied by FX reserve data”, once again suggesting that China is eager to mask the true extent of reserve outflows, perhaps in an attempt to not precipitate the feedback loop of even further panicked selling of Yuan and even more outflows, and thus, even more reserve depletion.
According to Goldman’s MK Tang, money has been leaving in yuan payments for 14 consecutive months, while the central bank’s yuan positions have slumped the most since January. The situation could get worse, said Banny Lam, head of research at CEB International Investment Ltd, cited by Bloomberg.
Minister says production is at 3.8 million barrels per day
Iran has long said it wouldn’t consider a production freeze until it had regained its pre-sanctions output level.
At a conference in Norway, Deputy minister for industry, mining and trade Moazami said the country is currently producing 3.8 million barrels per day. That’s up from 3.6mbpd in the latest OPEC data.
Iran’s production hasn’t been above 4mbpd since the 1970s.
What might give Iran more room to continue expanding production is that some officials say they need to reclaim ‘market share’. Given that overall global production has risen since the pre-sanctions era, that might give them more space to ramp.