Friday , June 18 2021

Oil rises, despite rising oil stocks and products



Crude oil prices dropped today after the Energy Information Administration reported a crude oil inventory of 3.6 million barrels for the week to 8 February. This compares with 1.3 million barrels for the previous week.

The EIA report came a day after the US Petroleum Institute served one of its regular surprises, reporting a drop in crude oil reserves of 998,000 bp. for the same period.

EIA also reported an increase of 400,000 barrels of gasoline compared to a half a barrel a week earlier and an increase of 1.2 million barrels of distilleries compared to 2.3 million barrels in the previous week . ,

Crude oil prices are rising this week, especially today, as Saudi Arabian Energy Minister Khalid al-Falih said yesterday that the kingdom continued to degrade deeper than OPEC's latest deal, with daily output dropping to 9.8 million barrels by March, and exports dropped to 6.9 million barrels per day. This drops from a production level of 11 million barrels in November and exports of 8.2 million barrels per day. The total number of OPECs in January dropped by 800,000 basis points, Reuters reported earlier today, to 30.81 million barrels per day.

At the same time, the events in Venezuela continue to maintain the highest support prices, all expecting its oil production to fall even in the face of a crisis in the government that has seen two presidents compete for the seat of power and two governments so far.

Back to the US, the EIA said earlier this week that it expects local crude oil production to reach 12.4 million barrels per year this year, rising to 13.2 million barrels per day by 2020. The price may not be the best news for oil bulls, as refineries are already pumping excessive amounts of gasoline while demand is decreasing.

Speaking about refineries, they last week processed an average of 15.8 million barrels of crude oil, producing 9.6 million barrels of gasoline, compared to 9.9 million barrels a week earlier and 4.8 million barrels of distillate fuel compared with 5.1 million barrels in the previous week. ,

By Irina Slavian for Oilprice.com

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