CRUDE OIL US crude oil inventories posted a large decrease of 9.5 MMBbl last week, according to the weekly EIA report. Gasoline inventories decreased 1.5 MMBbl, while distillate inventories increased 3.7 MMBbl. The total petroleum inventories showed a decrease of 3.8 MMBbl. US crude oil production increased 100 MBbl/d last week per EIA. Crude oil imports were down 0.3 MMBbl/d to an average of 7.3 MMBbl/d versus the week prior. Prices regained their bullish momentum primarily on the effects from Hurricane Barry in the Gulf of Mexico, which forced US Gulf operators to shut in nearly 1.0 MMBbl/d. The bullish reduction of crude oil inventories in the EIA’s data release on Wednesday also contributed to the gain. These bullish elements brought further support to prices beyond the existing factors provided by the geopolitical unrest in the Mideast, which escalated after Iran’s threats to restart its deactivated centrifuges and increase uranium enrichment. The deployment of a British frigate to escort a BP tanker through the Strait of Hormuz, which was challenged by Iran boats, brought further concerns about this critical shipping lane for crude oil supplies. Despite these elements and the continuation of the OPEC+ supply cuts through Q1 2020, the… continue reading
Continue reading The Week Ahead For Crude Oil, Gas and NGLs Markets – July 15, 2019. This article appeared first on CTRM Center.
Source: CTRM Center