Oil commentary - 11 January 2018

Morning all. Brent closed up 0.38 to $69.20, WTi closed at $63.57 up 0.61 and Bitcoin closed at $14,902 up $441. I'm sorry but I'm going to start yet another morning with another rant. So, EIA data was published last night and again we saw another draw on crude inventories. First let's forget the fact that the numpties at API were only out by 6.5mn bbls last week. Even though the market STILL reacts to these ridiculously offside numbers and doesn't adjust from them when they come in abysmally wrong is beyond me. Seriously, how do these people get these things so wrong? If they were dentists and you went in for a filling and came out with a pair of breasts you would probably question that that dentist doesn't know what they're doing. Grrr. Anyway moving on - so the EIA showed a draw on crude. Great. 5 weeks of draws and the market sees this as a positive step that the market is rebalancing. Hold on their Nessie. Since December 1st we have seen draws on US crude of approx 34.155mn bbls. Wonderful. BUT since December 1st we have seen product builds (gasoline and distys) of 38.489mn bbls. !!!! Refineries are running at record levels and the crude isn't actually going anywhere! In fact we have seen a net increase on crude and oil products of 4.334 mn bbls! I honestly just don't get it. How can these numbers be ignored? Let's add some other harsh realities that are being awkwardly ignored like when you see an ex girlfriend in a super market you really really don't want to speak to. Es Sider pipeline down - now fixed apparently. Forties pipeline went down - now fixed. US oil production at 10mn bpd and EIA predict it will be at 11mn bbls a day. Yet here we are, flirting with $70 per bbl. I give up. I'm not in tomorrow, I'll probably be in a nut house banging my head against a padded wall about this oil market. I wish you all a good day and a nice weekend.