CHART OF THE DAY: News of Oil Bears' Death May Be Premature

CHART OF THE DAY: News of Oil Bears' Death May Be Premature - COD updated 2 18

Below is a brief excerpt from today's Morning Newsletter written by Daryl Jones, Hedgeye Director of Research. 

In Chart of the Day, we highlight weekly U.S. oil production in the U.S. going back to 1983 (as long as the data has been kept).  As you can see, weekly oil production in the U.S. hit its highest level in more than 32-years last week.  If Wood Mackenzie is correct, it seems we may not be done with #DrillBabyDrill just yet.

 

Inasmuch as oil bulls want the bottom to be in for WTI, the chart is very telling.  Not only is oil production at a 32+ year high in the U.S., it is growing some 10% year-over-year.  Unfortunately, again for oil bulls, on the demand side, the outlook is not overly robust either, with U.S. oil demand at a more than 12-year low (as a % of GDP).