CRUDE OIL US crude oil inventories posted an increase of 1.1 MMBbl last week, according to the weekly EIA report. Gasoline and distillate inventories increased 0.8 MMBbl and 0.4 MMBbl, respectively. Total petroleum inventories increased 0.9 MMBbl. US crude oil production was flat week over week, per EIA, while crude oil imports were up 0.3 MMBbl/d, to an average of 7.1 MMBbl/d. The WTI market opened with a large gap between the previous Friday’s close and the open late Sunday night. The strength of the rally was expected as traders assessed the immediate and longer-term impact of the Iranian attack on the Abqaiq plant and fields, which limited production to 5.7 MMBbl/d. Prices then spent the rest of the week understanding the time period for Saudi to recoup the supply loss, with some hoping that the production would be restored by the end of the month. Time will tell whether those hopes are accurate, but the production will be coming back to the market at some point. The attacks are going to have a long-lasting effect on crude oil prices, regardless of the production coming back, and are likely to cause a higher risk premium to prices based on the… continue reading
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Source: CTRM Center