Column: U.S. oil inventories offer hope, and a warning, to OPEC+ - Kemp | Reuters
U.S. petroleum inventories are gradually normalising as output curbs by OPEC+ and processing restraint by refiners push the oil market back towards balance.
But with stocks of crude and distillates still well above the five-year average, OPEC+ and refiners will need to maintain their disciplined approach until at least March to avoid renewed downward pressure on prices.
U.S. stocks of crude and petroleum products outside the strategic petroleum reserve declined by 11 million barrels last week and have fallen by a total of 96 million barrels over the last 16 weeks.
Commercial petroleum inventories are 7% above the previous five-year average, down from a surplus of 14% in the middle of July (“Weekly petroleum status report”, Energy Information Administration, Nov. 12).
Commercial inventories have fallen in 15 out of the last 16 weeks, a sign the oil market is under-supplied as a result of production cuts by OPEC+.
No comments:
Post a Comment