Diverging inventories?

Crude markets remained supported, ahead of the OPEC+ meeting, despite inventory builds reported by the API survey. Indeed, crude inventories grew by 3.6 mb, while Cushing stocks were seen down by 0.8 mb, explaining why WTI’s backwardation remained elevated compared to the ICE Brent backwardation. On a global scale, total inventories are seen to have contradictory evolutions. Indeed, while Kpler is seeing a stabilization of global crude stocks, Kayrros – who tracks onshore inventories – are seeing a rapid depletion amounting to -3.8 mb/d of supply deficit. 

In the Middle East, Fujairah inventories were depleted by another 0.6 mb last week, mostly in middle-distillates, as exports to Europe and Asia were boosted by backwardation in Asia and Europe.