Excess crude oil inventories in the US are finally and clearly in retreat as Opec’s output agreement nears the end of its fourth month. But those oil bulls looking for higher prices shouldn’t get too excited just yet – the surplus may just be moving elsewhere.
True, the crude stockpile fell in each of the first three weeks of April, and the 3.64 million-barrel decline in the last of those was the biggest weekly drop of the year, according to the Energy Information Administration.Over the period, inventories were drawn down at an average rate of 3,26,000 barrels a day, and a further 63,000 barrels a day have been drawn from the Strategic Petroleum Reserve (SPR) as part of a programme of sales put in place last year. This is far from spectacular, but it does buck the seasonal trend. US crude oil inventories typically rise during the first four months of the year, so the draw this year has begun about a month earlier than usual. Read More…
Credit By : The Economics Times
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