• 14 hours Oil Pares Gains After API Reports Surprise Crude Inventory Build
  • 15 hours Elon Musk Won’t Get Paid Unless Tesla Does “Extraordinarily Well”
  • 15 hours U.S. Regulators Keep Keystone Capacity Capped At 80 Percent
  • 16 hours Trump Signs Off On 30 Percent Tariff On Imported Solar Equipment
  • 18 hours Russian Funds May Invest In Aramco’s IPO To Boost Oil Ties
  • 19 hours IMF Raises Saudi Arabia Growth Outlook On Higher Oil Prices
  • 20 hours China Is World’s Number-2 In LNG Imports
  • 1 day EIA Weekly Inventory Data Due Wednesday, Despite Govt. Shutdown
  • 1 day Oklahoma Rig Explodes, Leaving Five Missing
  • 2 days Lloyd’s Sees No Room For Coal In New Investment Strategy
  • 2 days Gunmen Kidnap Nigerian Oil Workers In Oil-Rich Delta Area
  • 2 days Libya’s NOC Restarts Oil Fields
  • 2 days US Orion To Develop Gas Field In Iraq
  • 4 days U.S. On Track To Unseat Saudi Arabia As No.2 Oil Producer In the World
  • 4 days Senior Interior Dept. Official Says Florida Still On Trump’s Draft Drilling Plan
  • 4 days Schlumberger Optimistic In 2018 For Oilfield Services Businesses
  • 5 days Only 1/3 Of Oil Patch Jobs To Return To Canada After Downturn Ends
  • 5 days Statoil, YPF Finalize Joint Vaca Muerta Development Deal
  • 5 days TransCanada Boasts Long-Term Commitments For Keystone XL
  • 5 days Nigeria Files Suit Against JP Morgan Over Oil Field Sale
  • 5 days Chinese Oil Ships Found Violating UN Sanctions On North Korea
  • 5 days Oil Slick From Iranian Tanker Explosion Is Now The Size Of Paris
  • 5 days Nigeria Approves Petroleum Industry Bill After 17 Long Years
  • 6 days Venezuelan Output Drops To 28-Year Low In 2017
  • 6 days OPEC Revises Up Non-OPEC Production Estimates For 2018
  • 6 days Iraq Ready To Sign Deal With BP For Kirkuk Fields
  • 6 days Kinder Morgan Delays Trans Mountain Launch Again
  • 6 days Shell Inks Another Solar Deal
  • 7 days API Reports Seventh Large Crude Draw In Seven Weeks
  • 7 days Maduro’s Advisors Recommend Selling Petro At Steep 60% Discount
  • 7 days EIA: Shale Oil Output To Rise By 1.8 Million Bpd Through Q1 2019
  • 7 days IEA: Don’t Expect Much Oil From Arctic National Wildlife Refuge Before 2030
  • 7 days Minister Says Norway Must Prepare For Arctic Oil Race With Russia
  • 7 days Eight Years Late—UK Hinkley Point C To Be In Service By 2025
  • 7 days Sunk Iranian Oil Tanker Leave Behind Two Slicks
  • 7 days Saudi Arabia Shuns UBS, BofA As Aramco IPO Coordinators
  • 7 days WCS-WTI Spread Narrows As Exports-By-Rail Pick Up
  • 7 days Norway Grants Record 75 New Offshore Exploration Leases
  • 7 days China’s Growing Appetite For Renewables
  • 8 days Chevron To Resume Drilling In Kurdistan
Alt Text

T. Boone Pickens Shuts Down Oil Hedge Fund

Oilman and investment manager T.…

Alt Text

Crypto-Miners Buy Russian Power Stations

Investors just scooped up two…

Alt Text

Will The Dollar Survive The Petro-Yuan?

The United States is no…

Is OPEC Throwing In The Towel On U.S. Market Share?

OPEC

Oil prices are rallying post-EIA report as today's crude draw was joined by a drop in gasoline inventories. Although waterborne imports were strong last week, OPEC flows to the U.S. continue to ebb. Hark, here are some things to consider in oil markets today:

Last week we discussed how the share of OPEC crude heading into Asia was on the wane, as other exporters were muscling in on the cartel's market share amid the OPEC production cut deal and rising demand. Switching our focus to the U.S., we can see that a similar trend has been underway in recent months, as deliveries from key suppliers such as Saudi Arabia drop - despite rising flows from others such as Angola and Libya.

After accounting for as much as 72 percent of U.S. waterborne deliveries in March, OPEC deliveries last month dropped to 65 percent, and are tracking even lower so far in August.

(Click to enlarge)

Even though U.S. production continues to rise, waterborne imports are also on the ascent, as U.S. refineries run at a record pace for the time of year, demanding more crude. Flows into the U.S. from non-OPEC members such as Brazil and Colombia have risen in recent months, providing much-needed heavier grades. Supplies have also been kicking higher from the likes of Norway and Russia. 

(Click to enlarge)

After today's EIA inventory report, total U.S. gasoline inventories are 2.8 million barrels below last year's levels. Gulf Coast inventories are 3.8 million bbls above year-ago levels, in itself the five-year high, because exports are unable to keep up with higher refinery runs. But it is Atlantic Coast inventories which are keeping total stocks in check, some 6 million bbls below year-ago levels. Related: The Next Oil Price Spike May Cripple The Industry

Atlantic Coast gasoline inventories are lower because U.S. importers have been much more disciplined this summer, dialing back on imports from Northwest Europe to avoid a repeat of the supply glut seen last year:

Finally, the chart below from the IEA shows OECD electricity generation by source. Preliminary data for 2016 indicate that natural gas has finally eclipsed coal in the OECD generation mix, after the two have been gradually converging over the last two decades. 

Nonetheless, fossil fuel electricity production has actually dropped in the OECD in 2016 for a fourth consecutive year, although natural gas rose by 5.8 percent. On the flip side, renewables continue to show strong growth, with solar power up 19.2 percent and wind power up 7.7 percent last year:

(Click to enlarge)

By Matt Smith

More Top Reads From Oilprice.com:




Back to homepage


Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News