The crude oil glut that many said would never go away is officially gone. For the first time since June of 2015, oil supplies are back in the average range and not above average. This is happening as U.S demand is above average and that in part explains why the supply of oil continues to drain at the fastest pace in history.
Welcome to leap year 2018! Ok, I know what you are thinking, you have not heard that it's a leap year. Well, 2018 is not a traditional leap year, but it will be a leap year for crude. Oil struggled this year as the market failed to be convinced that the combination of OPEC and Non-OPEC production cuts and strong global demand could reduce global supply.
Yesterday was all about commodities; and the S&P 500 posted its lowest volume since the day after Thanksgiving. The major catalyst was crude oil, achieving $60 per barrel and trading to the highest level since June 25, 2015.
What good is it for someone to gain a pipeline, yet lose another? The Forties pipeline is coming back but a loss of a Libyan oil pipeline has the oil bears in a less than festive mood. WTI crude oil hit $60 a barrel yesterday for the first time in 2-and-a-half years and Brent crude hit over $67 a barrel on reports that armed men blew up a pipeline pumping crude oil to Es Sider port on, cutting Libya’s output by up to 100,000 barrels per day.
So much for global warming! Winter is back, and back with a frosty reminder that it can still get cold. Really cold. It's the first real blast of winter in a very long time and the market is trying to get a feel for how that may effect supply.