U.S. Commercial Crude Oil Stocks Hit Record High - OilPrice.com

U.S. Commercial Crude Oil Stocks Hit Record High - OilPrice.com


U.S. Commercial Crude Oil Stocks Hit Record High - OilPrice.com

Posted: 29 Jun 2020 11:08 AM PDT

The United States held a record-high level of commercial crude oil inventories as of the week to June 19 following the collapse in demand in the lockdown and the slow demand recovery after lockdowns were lifted, data from the Energy Information Administration (EIA) showed on Monday.

In its latest Weekly Petroleum Status Report, the EIA reported a 1.4-million-barrel increase in crude oil inventories for the week to June 19. At 540.7 million barrels, U.S. crude oil inventories are still above the five-year average for this time of the year, and demand improvement seems to be going more slowly than hoped, as suggested by the change in fuels.  

At nearly 541 million barrels of crude oil inventories for the week to June 19, the U.S. beat by 5 million barrels its previous record for the highest volume of commercial inventories from late March 2017, EIA data showed.

As of June 19, U.S. net commercial crude oil inventories were at 62 percent of total available storage capacity.

Commercial crude oil inventories in the U.S. Gulf Coast have jumped by 63 million barrels since March 13, when a national emergency was declared in the United States. The Gulf Coast inventories are currently sitting at an all-time high of 249 million barrels, according to the EIA.

However, the capacity utilization of the crude oil storage at Cushing, Oklahoma, dropped to 58 percent on June 19, from 83 percent capacity filled on May 1, the EIA has estimated. Fears of overflowing storage sent WTI Crude prices – based on physical delivery of WTI crude oil at Cushing – below zero on April 20 and 21.  

Demand, especially gasoline demand, in the U.S. has been recovering from the April lows, but it is still well below the levels typical for this time of the year. Refinery capacity utilization is rising much slower as refiners and the market have to draw down excess inventories that surged at the start of the lockdowns.

By Charles Kennedy for Oilprice.com

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Oil prices slip as weak Japan data exposes market jitters over fragile demand - Economic Times

Posted: 29 Jun 2020 07:20 PM PDT

MELBOURNE: Oil prices fell in early trade on Tuesday after weak Japanese industrial production data, not usually a market-moving factor, was enough to jangle trader nerves over a bumpy recovery in fuel demand as coronavirus pandemic restrictions ease.

U.S. West Texas Intermediate (WTI) crude futures briefly traded higher then fell 38 cents, or 1%, to $39.32 a barrel by 0038 GMT, after climbing 3% on Monday.

Brent crude futures for September fell 32 cents, or 0.8%, to $41.53 a barrel, paring Monday's 92-cent gain. There were no early trades on the August contract, which rose 69 cents on Monday and expires on Tuesday.

"Japanese industrial production data released this morning may take the gloss off the overnight moves," CMC Markets strategist Michael McCarthy said in a note.

Japan reported industrial output for May fell 8.4% in May from the previous month, compared with market forecasts for a 5.6% decline.

Optimism on Monday had been based on strong growth in U.S. pending home sales, bolstering belief that global fuel demand is rising steadily as major economies reopen after coronavirus lockdowns, while the Organization of Petroleum Exporting Countries (OPEC) and its allies, known as OPEC+, comply with production cut commitments.

Bulls will be looking for more signs of a demand recovery in data due on Tuesday from the American Petroleum Institute industry group, and from the U.S. government on Wednesday.

A preliminary Reuters poll showed analysts expect U.S. crude oil stockpiles fell from record highs last week and gasoline inventories decreased for a third straight week.

"The oil 'perma bulls' continue to buy the dips as their optimism stems from the fact that global demand is unambiguously on the rise," AxiCorp global market strategist Stephen Innes said in a note.

Oil drops nearly 6% on record U.S. crude inventories, pandemic resurgence fears - CNBC

Posted: 24 Jun 2020 11:37 AM PDT

Oil pumping jacks, also known as "nodding donkeys", operate in an oilfield near Almetyevsk, Tatarstan, Russia, on Wednesday, March 11, 2020.

Andrey Rudakov | Bloomberg via Getty Images

Oil prices fell  nearly 6% on Wednesday after U.S. crude storage hit another record and coronavirus cases rebound in countries like Germany and surge in heavily populated areas of the United States.

Mounting coronavirus cases in the United States, which had its second-largest rise in new infections since the crisis began, China, Latin America and India have unnerved investors and pressured oil prices.

"These are all important oil demand centers. A second wave of infections and lockdowns will derail the global economic recovery and with it, oil demand and prices," said Stephen Brennock of broker PVM.

Brent crude was down $2.29, or 5.5%, to $40.29 a barrel, a day after hitting its highest levels since early March, just before the pandemic and Saudi-Russia price war hit the markets. West Texas Intermediate crude settled $2.36, or 5.85%, lower at $38.01 per barrel.

U.S. crude oil inventories swelled last week by 1.4 million barrels, exceeding analysts' expectations in a Reuters poll for a 299,000-barrel rise, the Energy Information Administration said, citing rising production.

That marked the third straight record for crude in U.S. storage.

"The thing I was most concerned about was the rebound in domestic production and it was up - as a standalone it was capable of doing some damage to the market," said Bob Yawger, director of energy futures at Mizuho.

The International Monetary Fund said the coronavirus is causing wider and deeper damage to economic activity than first thought, and it slashed its 2020 global output forecasts further.

India's oil imports in May hit the lowest since October 2011 as refiners with brimming crude inventories cut purchases.

China, the world's top crude importer, is also expected to slow imports in the third quarter, after record purchases in recent months.

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