• 3 minutes Tesla is the Most American Made Car!
  • 7 minutes Should the US government be on the hook for $15 billion?
  • 9 minutes California breaks 1 GW energy storage milestone
  • 1 hour GREEN NEW DEAL = BLIZZARD OF LIES
  • 15 mins U.S. Presidential Elections Status - Electoral Votes
  • 1 min Severe Drought in the West Will Greatly Reduce Electrical Production from Hydroelectric Turbines.
  • 2 days Сryptocurrency predictions
  • 5 hours The Climate Scare Stories Began With Far Left Ideology Per GreenPeace Co-Founder
  • 14 hours NordStream2
  • 1 day Beware the Left's 'Degrowth' Movement (i.e. why Covid-19 is Good)
Editorial Dept

Editorial Dept

More Info

Premium Content

The Largest Oil Inventory Increase In History

1. The oil market’s massive inventory problem

- Oil inventories increased in the second quarter at a rate of nearly 1.8 mb/d, more than four times the ten-year average, according to Standard Chartered.

- Inventories typically increase in the second quarter, but this was the largest build since data collection began in 1956.

- The oil market has technically flipped into a deficit, although at a much lower base. Instead of a 100 mb/d market, supply is right around 88 mb/d and demand at 89 mb/d, rebalancing at a lower level.

- If sustained, the market will draw down on inventories going forward, although the overhang will take around 2 years to drain back to normal levels.

2. Bloated distillate stocks

- Crude stocks rose last week, somewhat deflating the bullish momentum from recent weeks. Distillate stocks continue to climb to unprecedented heights even as gasoline stocks have begun to come down.

- Distillate stocks have surged to their highest level in nearly four decades. “This is a reflection of the ongoing weakness in truck transport and other industrial activities,” Commerzbank wrote in a note.

- Refining margins have fallen dramatically. Squeezed margins are a reflection of rising crude prices but depressed demand for products.

- Bloated distillate inventories could ultimately cut into processing, removing a demand pull on crude stocks.

3. Major capex cuts

- The U.S.…





Leave a comment

Leave a comment




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News