The Week Ahead For Crude Oil, Gas and NGLs Markets – July 1, 2019

CRUDE OIL US crude oil inventories posted a large decrease of 12.8 MMBbl last week, according to the weekly EIA report. Gasoline and distillate inventories decreased 1.0 MMBbl and 2.4 MMBbl, respectively. Total petroleum inventories showed a substantial decrease of 11.9 MMBbl. US crude oil production decreased 100 MBbl/d last week, per EIA. Crude oil imports were down 0.8 MMBbl/d to an average of 6.7 MMBbl/d versus the week prior. Prices kept the bullish bias that had started the previous week when tensions between Iran and the US escalated. The downing of the US drone by Iran and the attacks on tankers in the Strait of Hormuz spooked traders with the possibility of restricted access to this critical shipping lane. Trump’s decision not to retaliate militarily has brought a leveling to the recent run, as the administration decided to increase the restrictions on Iran in the financial markets as retaliation. The upcoming OPEC+ meeting this week will likely produce extensions of the production cuts, extending them through 2019 and possibly into the first quarter of 2020. Press reports over the weekend stated that at the end of the G20 summit, Russia and Saudi Arabia had reached a deal to extend… continue reading

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Source: CTRM Center

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