STOCK MARKET SHOCKER: CRUDE OIL INVENTORIES SKYROCKET!
The market is reeling as the oil scene takes a nosedive after a three-day rally! Brace yourselves, because the latest numbers from the American Petroleum Institute have delivered a gut-wrenching blow. The oil market is on the decline this morning, with the API revealing a staggering 9.04 million barrels increase in U.S. crude oil inventories last week! That’s more than triple the expected build of 2.5 million barrels! If the Energy Information Administration confirms this, we’re looking at the largest inventory buildup in a WHOLE YEAR!
API REPORT REVEALS OMINOUS SHADOWS OVER OIL MARKET!
The API’s dark report spilled the beans that while crude stocks skyrocketed, gasoline and distillate inventories took a hit, dropping by 2.5 million and 0.6 million barrels, respectively. Oil traders are on the edge of their seats, waiting for the EIA report later today to confirm this shocking trend!
In a twist of fate, the EIA’s Short-Term Energy Outlook predicts a slight uptick in U.S. crude output, with 2025 figures forecasting a record average of 13.59 million barrels per day. But hold onto your hats—the EIA expects an even bigger boom in 2026, with growth over 100,000 barrels per day! This explosive forecast matches the surge in drilling activity across the U.S. We’ve got an increase of one active oil rig! Yes, the total now stands at a whopping 480!
WARNING: RUSSIAN REFINERIES IN CHAOS AFTER DRONE ATTACKS!
And that’s not all! A fresh batch of reports claims oil refinery operations in Russia are collapsing due to relentless drone attacks from Ukraine. Early February alone saw Russian refineries processing just 5.1 million barrels per day—300,000 barrels per day less than January! Lukoil’s Volgograd refinery was forced to cut production by over 50%, and Rosneft’s Ryazan facility? Totally shut down! An absolute disaster for Russian oil!
A WEEK FULL OF OIL MARKET DRAMA AHEAD!
This week is shaping up to be a nail-biter! Along with the U.S. inventory numbers, OPEC is about to drop its monthly report tonight, and then the IEA is set to follow on the morrow! Keep your eyes peeled, folks, because the broader markets will be laser-focused on U.S. CPI data and some hot takes from the semi-annual monetary policy testimony!
METALS MELTDOWN: IRON ORE SOARS ON CYCLONE WARNINGS!
In the metals market, hold onto your wallets! Iron ore prices are EXPLODING, hitting their highest levels since October 2024—nearly $108 a ton! Why, you ask? A brewing tropical cyclone, Cyclone Zelia, is set to hammer Australia’s Pilbara region, sending supply concerns through the roof! Port Hedland is closing ALL operations as preparations escalate! The miners are already crying over the above-average rainfall disrupting their output!
And in the Philippines, the Nickel Industry Association is painting a rosy picture, predicting a 10-15% output increase in 2025! But wait—the government’s licensing issues might just squeeze domestic smelters dry! Meanwhile, demand from China remains STRONG, keeping the market on its toes!
FARMERS IN PERIL: USDA LOWERING GRAIN ESTIMATES!
In agricultural news that’ll make your head spin, the USDA has just dropped a bombshell in its latest WASDE report! For 2024/25, global corn inventory estimates are now tighter than ever, plunging from 293.3 million tons to a meager 290.3 million tons! With Argentina and Brazil facing devastating weather losses, it’s a recipe for disaster on the grain market!
As for soybeans? The forecast isn’t looking sunny either! The USDA cut its production forecast to 420.8 million tons, while adjusting global soybean consumption up by 0.7 million tons! The market was expecting 128 million tons by the end of 2024/25, but hold onto your seats—the USDA just lowered that to a shocking 124.3 million tons!
Wheat? The USDA trimmed its 2024/25 domestic ending stocks from 798 million bushels to 794 million bushels, raising production expectations and causing a stir in global projections! Demand is booming, pushing down ending stock estimates! Hold on tight, because the market rollercoaster is far from over!
