In this file:
∑ Oil glut officially gone
∑ T. Boone Pickens closes energy hedge fund, cites diminishing health
Oil glut officially gone
By Phil Flynn, Futures Magazine
January 11, 2018
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.
The Energy Information Administration reported that U.S. commercial crude oil inventories (excluding those in the Strategic Petroleum Reserve) fell by 4.9 million barrels from the previous week. That puts supply at 419.5 million barrels down from March 2017 when supply was at 528.7 mb in storage. That is a massive drop in supply as U.S demand soars, U.S imports have fallen and U.S crude exports are at records.
While we saw an increase in products, that was pale in comparison to recent demand. The EIA reported that total motor gasoline inventories increased by 4.1 million barrels last week and are near the top of the average range. Finished gasoline inventories were down slightly.
Yet, the demand was the story that has not been told enough. During the last four weeks, motor gasoline product supplied averaged about 9.1 million barrels per day, up by an impressive 2.5% from the same period last year.
Distillate fuel inventories increased by 4.3 million barrels last week and are in the middle of the average range for this time of year. Distillate fuel product supplied averaged about 3.9 million barrels per day over the last four weeks! That is a big increase year-over-year.
Itís not just U.S. demand. This demand surge is a global phenomenon...
Record draw for natural gas ...
more, including chart
T. Boone Pickens closes energy hedge fund, cites diminishing health
∑ "It's no secret the past year has not been good to me, from a health perspective or a financial one," Pickens said in a confidential letter obtained by CNBC.
∑ Pickens, 89, rose to prominence as the chief of Mesa Petroleum during a period of corporate takeovers in the 1980s.
∑ "As this chapter closes, I couldn't be more excited at what lies ahead," Pickens said in the letter.
Becky Quick & Fred Imbert, CNBC
Jan 12, 2018
Legendary energy investor T. Boone Pickens is shutting the doors on his energy hedge fund, BP Capital. Pickens cited declining health as a reason for closing the fund.
"It's no secret the past year has not been good to me, from a health perspective or a financial one," Pickens said in a confidential letter obtained by CNBC. "Health-wise, I'm still recovering from a series of strokes I suffered late last year, and a major fall over the summer. If you are lucky enough to make it to 89 years of age like I have, those things tend to put life in perspective."
The fund will "move toward a family office structure," he said, noting that key employees of BP Capital will be going out on their own.
Pickens rose to prominence as the chief of Mesa Petroleum during a period of corporate takeovers in the 1980s. After retiring at 68, he formed the energy investment firm BP Capital, where he made his first billion dollars.
Since then, he has remained a closely followed oracle of energy markets.
"It has been one hell of a roller coaster ride," he said. "I've seen oil prices bounce around from $10 a barrel up to $147, down to $26 and now appear to be inching up ever so slowly."
"I've thrived and profited on the volatility in the energy space. But for me, personally, trading oil is not as intriguing to me as it once was," Pickens added...