Oil drops sharply as IEA expects inventories to rise

[Omaha Steve]

Source: Reuters

BY ROBERT GIBBONS

Crude oil prices fell for the first time in four sessions on Tuesday after the International Energy Agency (IEA) warned that ample supplies will raise global inventories before investment cuts begin to significantly dent production.

Oil stockpiles in member countries of the Paris-based Organization for Economic Cooperation and Development (OECD) may approach a record 2.83 billion barrels by mid-2015, said the IEA, advisor on energy policy to a group of Western nations.

U.S. March crude futures CLc1 fell $2.84, or 5.37 percent, to settle at $50.02 a barrel, after dropping to $49.86.

Brent March crude LCOc1 fell $1.91, or 3.3 percent, to settle at $56.43 a barrel, having fallen as low as $56.11.

FULL story at link.

http://s4.reutersmedia.net/resources/r/?m=02&d=20150210&t=2&i=1023901602&w=580&fh=&fw=&ll=&pl=&r=LYNXMPEB190IZ

A worker checks the valve of an oil pipe at an oil field owned by Bashneft company near the village of Nikolo-Berezovka, northwest from Ufa, Bashkortostan, January 28, 2015.
CREDIT: REUTERS/SERGEI KARPUKHIN

Read more: http://www.reuters.com/article/2015/02/10/us-markets-oil-idUSKBN0LE06820150210

[Elmer S. E. Dump]

1. Excuse my hardy-har-har.

[freshwest]

2. I wonder at times... If Obama and the Saudis pushed this to screw the Koch brothers...

But IDK what's coming down the road. Certainly not a commodities trader, to know the way it will shake out in the coming years. If this disadvantages those feudal wannabes, I'm all for it. Just looking for the silver lining in that dark cloud.

[Drahthaardogs]

3. I think all commodity trading is likely bullshit

Eight dollar corn to three dollar corn in a year. $100 oil to $50 dollar oil in six months. Pork, beef, soybeans, I just do not believe there is THAT much volatility. I think it is all driven by price manipulators who do this shit so them and their friends can get rich.

[DeSwiss]

4. Add: .jpg

http://s4.reutersmedia.net/resources/r/?m=02&d=20150210&t=2&i=1023901602&w=580&fh=&fw=&ll=&pl=&r=LYNXMPEB190IZ

And you get:


A worker checks the valve of an oil pipe at an oil field owned by Bashneft company near the village of Nikolo-Berezovka, northwest from Ufa, Bashkortostan, January 28, 2015.
CREDIT: REUTERS/SERGEI KARPUKHIN

K&R

[Javaman]

5. who is the biggest loser in all of this...

Russia.

just saying.