CRUDE OIL US crude oil inventories posted a decrease of 8.5 MMBbl last week, according to the weekly EIA report. Gasoline inventories decreased 1.8 MMBbl, while distillate inventories decreased 0.9 MMBbl/d. With the draw in crude inventories, total petroleum inventories posted a significant decrease of 10.1 MMBbl. US crude oil production increased 900 MBbl/d last week, per EIA, as the hurricane-related shut-ins came back online. Crude oil imports were down 0.37 MMBbl/d to an average of 6.7 MMBbl/d. Prices started the week on solid footing with concerns around the shipping lanes in the Strait of Hormuz. With Iran’s confiscation of a British vessel the previous week, the market remained concerned about the navigation channel, as one-fifth of the world’s oil supply travels through this critical area. Currently, the US, Britain, and France have pledged to secure safe passage through the waterway, and last week these countries asked Germany to assist in combating any altercations by Iran. As long as Iran continues this disruptive behavior pattern, WTI will likely be supported, but in a diminutive way, as trade seems more focused on the demand side. That focus became evident after a bullish inventory release, which only held the gains up to… continue reading
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Source: CTRM Center