Not out the Woods...8 Jul 2020 10:52
Listening to the news we as a world seem a very long way from ending Covid 19 until a vaccine comes along.
Oil price seems to be stalling and must admit I was surprised by the API results
"The American Petroleum Institute reported late Tuesday that U.S. crude supplies rose by 2 million barrels for the week ended July 3, according to sources. The API data also reportedly showed gasoline stockpiles fell by 1.8 million barrels, while distillate inventories declined by about 847,000 barrels. Crude stocks at the Cushing, Okla., storage hub, meanwhile, edged up by 2.2 million barrels for the week, sources said. Inventory data from the Energy Information Administration will be released Wednesday. The EIA data are expected to show crude inventories declined by 3.7 million barrels last week, according to analysts polled by S&P Global Platts. They also forecast supply declines of 1.2 million barrels for gasoline and 500,000 barrels for distillates. August West Texas Intermediate crude CLQ20 was at $40.44 a barrel in electronic trading. It settled Tuesday at $40.62 on the New York Mercantile Exchange."
What will the EIA bring today.....Also interesting to note that EIA think prices will rise....
"Energy Information Administration raised its price outlook for Brent crude to $41 per barrel for the second half of 2020—this is $4 per barrel higher than the EIA’s forecast last month.
In its Short-Term Energy Outlook (STEs expectation that global oil inventories will continue to decline in the second half of the year and throughout next year.
“EIA expects high inventory levels and surplus crude oil production capacity will limit upward price pressures in the coming months, but as inventories decline into 2021, those upward price pressures will increase,” the EIA said in a summary of its monthly report.
Specifically, the EIA is forecasting that global liquid fuel inventories will rise at a rate of 6.7 million bpd in H1 2020, and then decline at a rate of 3.3 million bpd in H2 2020. Finally, in 2021, the EIA expects that inventories will decline further by 1.1 million bpd.
The EIA expects U.S. oil production to fall this year and next, with WTI prices sitting below $50 per barrel through next year. The EIA’s expectation is that oil production in the United States will average 11.6 million barrels per day this year, and 11.0 million bpd next year. This is off from an average of 12.2 million bpd last year. The EIA expects U.S. liquid fuels consumption to fall this year by an average of 2.1 million bpd from 2019, to 18.3 million bpd."
Where next for us is the question and in which direction.....
Sign In
Follow the stocks
