• 4 minutes Phase One trade deal, for China it is all about technology war
  • 7 minutes IRAN / USA
  • 11 minutes Shale Oil Fiasco
  • 16 minutes Swedes Think Climate Policy Worst Waste of Taxpayers' Money in 2019
  • 5 hours China's Economy and Subsequent Energy Demand To Decelerate Sharply Through 2024
  • 5 hours Indonesia Stands Up to China. Will Japan Help?
  • 5 hours Beijing Must Face Reality That Taiwan is Independent
  • 6 hours Gravity is a scam!
  • 24 hours What's the Endgame Here?
  • 4 hours US Shale: Technology
  • 2 days 10 Rockets hit US Air Base in Iraq
  • 1 day Canada / Iran
  • 2 days Wind Turbine Blades Not Recyclable
  • 2 days Tales From The Smoke Shack and beyond.
  • 1 min Prototype Haliade X 12MW turbine starts operating in Rotterdam
  • 2 days IRAQ / USA

OPEC Puts Oil Markets On Edge

Rig

Friday June 1, 2018

In the latest edition of the Numbers Report, we’ll take a look at some of the most interesting figures put out this week in the energy sector. Each week we’ll dig into some data and provide a bit of explanation on what drives the numbers.

Let’s take a look.

Key Takeaways

- U.S. oil production has hit 10.769 million barrels per day, yet another record. After only marginal gains in the last few weeks, the strong 44,000 bpd weekly increase eased concerns that infrastructure bottlenecks were restraining production growth.
- Still, bottlenecks are a concern, resulting in a wider WTI discount this week.
- WTI weakness, however, led to a large increase in U.S. crude oil exports.
- The crude stock draw was larger than expected, but it didn’t do much to rescue oil prices.

1. Inventories back to average

(Click to enlarge)

- The oil market is tighter than at any point in the last few years. The metric that most analysts (and OPEC) have been watching is the level of oil inventories relative to the five-year running average.
- Inventory levels exploded during the downturn, with OECD stocks surpassing 3 billion barrels. That coincided with a period in which oil prices plunged below $30 per barrel.
- The OPEC cuts helped drain inventories. Since the beginning of 2017 when the deal began, OECD stocks have declined by 234 million barrels through April 2018.…




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