The Idiocy Of US Drawdown Data

Every week day traders get all worked up over fluctuations of a few million barrels in Cushing. And the global price of oil swings one way or another. It is not a very good metric though. What should be more concerning is how much oil is at sea. The Arabic countries are increasing their production, and all of this extra production is being transported by ship to ports in Asia. And these ports are receiving ships faster than they can be offloaded. This is enough of a problem that the Saudi's have ordered thirty odd new VLCC class tankers. Each ship with a two million barrel capacity. That is a hell of a lot of additional oil that will go out to sea. And should be a lot more concerning than one or two million barrels in Oklahoma.