• 3 minutes Shale Oil Fiasco
  • 7 minutes "Leaked" request by some Democrats that they were asking Nancy to coordinate censure instead of impeachment.
  • 12 minutes Trump's China Strategy: Death By a Thousand Paper Cuts
  • 16 minutes Global Debt Worries. How Will This End?
  • 19 mins americavchina.com
  • 3 hours Tories on course to win majority
  • 19 hours DUMB IT DOWN-IMPEACHMENT
  • 20 hours POTUS Trump signs the HK Bill
  • 3 hours Greta named Time Magazine "Person of the Year"
  • 18 hours Winter Storms Hitting Continental US
  • 1 day WTO is effectively neutered. Trump *already* won the trade war against China and WTO is helpless to intervene
  • 12 hours Aramco Raises $25.6B in World's Biggest IPO
  • 18 hours China Burns More Coal than the Rest of the World !
  • 24 hours Everything you think you know about economics is WRONG!
  • 18 hours 2nd Annual Great Oil Price Prediction Challenge of 2019
Alt Text

Why Are Oil Markets Suddenly So Volatile?

Volatility in oil markets has…

Alt Text

Oil Jumps As U.S. Offers To Cut Tariffs By 50%

Oil prices rose on Thursday…

Alt Text

The OPEC+ Deal Was The First Step To $100 Oil

The new OPEC+ agreement is…

Stuart Burns

Stuart Burns

Stuart is a writer for MetalMiner who operate the largest metals-related media site in the US according to third party ranking sites. With a preemptive…

More Info

Premium Content

Oil Prices Rise, Yet Global Inventories Remain Healthy

We’ve seen oil prices rise recently due to concerns in the Middle East (Syria’s violence escalating, and Libya showing oil exports and production at the lowest levels since the civil war in 2011), and in Nigeria, where industrial-scale oil theft, sabotage and technical problems have hit output massively.

Fortunately, according to the WSJ, global oil inventories remain at healthy levels.

Combined government-held and commercial oil inventories in the major industrialized countries that make up the OECD were sufficient to cover 93 days of forward demand at the end of June. That compares with 91 days of forward demand coverage in June 2011, when the International Energy Agency (IEA) led a coordinated drawdown of 60 million barrels of oil from inventories to cover supply shortages caused by the Libyan civil war.

Related article: Syrian Uncertainty to Cause Oil Price Spike?

The option remains, if oil prices spike, to do the same again – but how bad will the price rise have to get before action is taken?

An oil price spike will be driven by investor fears, and the hard logic of individual country production and inventory levels will only have a mitigating, not a preventative, effect. Already we have seen a sell-off in shares and the gold price back over $1,400 an ounce, hitting over $1,430 in trading yesterday.

The oil price, meanwhile, has been rising in lockstep with tensions over Syria, and currently trades at more than $115 a barrel for Brent crude.

What impact would higher oil prices have on your business and the materials you buy? Definitely something to strategize over, because some contingency planning may be in order.

By. Stuart Burns




Download The Free Oilprice App Today

Back to homepage



Leave a comment
  • Chester on August 30 2013 said:
    It is not a question of whether price manipulation is taking place at high levels. Rather it is a question of why government officials do not insist on a crackdown on easily manipulated electronic trades - without - exchange - or - delivery.

    Someone doesn't like transparency in oil markets, and they are getting very wealthy from the lack.

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play