Global Oil Market - Jan 24
Posted: Mon Jan 24, 2022 7:27 pm
Declining U.S. Petroleum Inventories Push Oil Prices Higher
By Tsvetana Paraskova - Jan 24, 2022, 6:00 PM CST
> U.S. commercial petroleum stocks have fallen in most of the weeks in the past year and a half.
> The continuously declining U.S. petroleum stocks over the past year suggest that supply has not caught up with rebounding demand.
> Petroleum stocks at lower than seasonal norms have contributed to market tightness alongside the OPEC+ group’s inability to fully meet its rising monthly production quotas.
Over the last 18 months OECD petroleum inventories have declined by 1.9 million barrels per day.
In my opinion:
> OPEC+ is now close to max production capacity as monthly "official" production increases are not happening in the real world.
> Russia is also at max capacity.
> From January to April, demand for oil will increase by over 2 million barrels per day, so inventories will keep declining and oil prices will go higher.
Read more: https://oilprice.com/Energy/Energy-Gene ... igher.html
U.S. inventories of home heating oil and diesel are "dangerously low"; 16% below the 5-year average. Ultra-light shale oil cannot be used to make diesel. This is a HUGE problem that is not getting the attention it deserves.
By Tsvetana Paraskova - Jan 24, 2022, 6:00 PM CST
> U.S. commercial petroleum stocks have fallen in most of the weeks in the past year and a half.
> The continuously declining U.S. petroleum stocks over the past year suggest that supply has not caught up with rebounding demand.
> Petroleum stocks at lower than seasonal norms have contributed to market tightness alongside the OPEC+ group’s inability to fully meet its rising monthly production quotas.
Over the last 18 months OECD petroleum inventories have declined by 1.9 million barrels per day.
In my opinion:
> OPEC+ is now close to max production capacity as monthly "official" production increases are not happening in the real world.
> Russia is also at max capacity.
> From January to April, demand for oil will increase by over 2 million barrels per day, so inventories will keep declining and oil prices will go higher.
Read more: https://oilprice.com/Energy/Energy-Gene ... igher.html
U.S. inventories of home heating oil and diesel are "dangerously low"; 16% below the 5-year average. Ultra-light shale oil cannot be used to make diesel. This is a HUGE problem that is not getting the attention it deserves.