EnergyScan

Stocks dynamics remains mysterious

Global crude stocks are the subject of interest for many market participants lately. Sattelite imagery providers are reporting steep draws since November, especially Kayrros. On the other side, more conventional surveying techniques such as the API survey reports stock builds in the US (0.6 mb last week for crude). The IEA also released their monthly oil report yesterday with the view that Q4 21/Q1 22 stock draws should ease, as OPEC production ramps up. With such diverging trends, time spreads remain supported, with US WTI time spreads departing from other markets and rallying even further. Dubai and Brent time spreads remained range-bound, close to 100 c$/b at the front, which would imply that stock draws may continue.

Source: Kayrros, onshore inventories

Looking at the API data release, crude stocks may have expanded by 0.6 mb, while gasoline stocks dipped by another 2.8 mb and distillates stocks remained broadly flat. This suggests that US refining continued to run at lower-than-expected levels, leaving the two fuel markets undersupplied. Both RBOB and Heating oil cracks rallied following the news, as East coast stocks were unlikely to be rescued by refined product imports from Europe due to the closed arbitrage.   

Share this news :
Share on twitter
Share on linkedin
Share on email

You might also read :

ES-oil
July 6, 2021

OPEC+ talks collapsed for July

On Monday, after a two-hour-long delay, the OPEC+ meeting was cancelled. Divergences between the UAE and the rest of the group, particularly Saudi Arabia, were too…
ES-gas
May 11, 2021

Strong price rise on the spot and the curve

European spot gas prices increased strongly yesterday, supported by higher gas demand due to the drop in temperatures below normal and lower wind power generation.…
ES-economy
February 16, 2021

Ever higher

Global stocks continue to rise and so do commodity prices and bond yields, while the Bitcoin is nearing $50000. Risky assets are pushed higher by…
Join EnergyScan

Get more analysis and data with our Premium subscription

Ask for a free trial here

Don’t have an account yet?  Sign up here!

[booked-calendar]