Global Oil Market - April 16

[dan_s]

From IEA "Oil Market Report" dated April 16, 2018:
"Since May last year they (crude oil and refined product inventories in OECD countries) have fallen constantly. The average and new data for February show a larger than usual fall in volume terms with stocks now only 30 million barrels above the five-year level, and product stocks actually below it. Our balances show that if OPEC production were constant this year, and if our outlooks for non-OPEC production and oil demand remain unchanged, in 2Q18-4Q18 global stocks could draw by about 600,000 b/d. With markets expected to tighten, it is possible that when we publish OECD stocks data in the next month or two they will have reached or even fallen below the five-year average target. It is not for us to declare on behalf of the Vienna agreement countries (OPEC + Russian lead group) that it is "mission accomplished", but if our outlook is accurate, it certainly looks very much like it."

U.S. crude oil, gasoline and jet fuel inventories are all below 26 days of supply. That is much lower than they should be heading into the Peak Demand Period of the year.