CRUDE OIL US crude oil inventories posted an increase of 2.9 MMBbl last week, according to the weekly EIA report. Gasoline and distillate inventories decreased 1.2 MMBbl and 3.9 MMBbl, respectively. Total petroleum inventories decreased 8.3 MMBbl. US crude oil production increased 200 MBbl/d, per EIA, while crude oil imports were down 0.67 MMBbl/d, to an average of 6.2 MMBbl/d. Crude spent the beginning of the week drifting lower, but closing the first three days of the week was flat. Concerns over the health of the global economy continued to drag on sentiment. On Tuesday, the new head of the IMF, Kristalina Georgieva, announced plans to reduce the 2020 global GDP growth outlook by 0.8 percentage points. This would take 2020 growth down to just 2.7%, the slowest pace of economic expansion since the 2008 financial crisis. On Friday, the International Energy Agency cut its demand growth forecasts to 1 MMBbl/d in 2019 and 1.2 MMBbl/d in 2020. The release also raised the forecasts for supply growth in 2020 from non-OPEC sources by 0.4 MMBbl/d. Amid the weak macro sentiment early in the week, futures markets largely ignored the upswell of political unrest in Ecuador, which has affected oil production… continue reading
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Source: CTRM Center