US Oil Imports Rise, Commercial Inventories Up

U.S. crude oil inventories rose by 3.7 million barrels, an unexpected increase due to higher imports and lower exports.
Importations de pétrole en hausse

Partagez:

The U.S. Energy Information Agency (EIA) has announced a significant increase in U.S. crude oil inventories for the week ending June 7, 2024. This increase of 3.7 million barrels contrasts sharply with analysts’ forecasts, who were expecting a decrease of 1.5 million barrels, following the drop in crude oil inventories announced in March.

Increase in imports

Crude oil imports jumped by almost 18% in one week, reaching a level not seen since August 2018. This substantial increase in imports was a key factor in the rise in inventories. At the same time, exports fell by 29%, also contributing to the accumulation of crude oil reserves.
Domestic production also rose slightly, from 13.1 to 13.2 million barrels per day, close to the all-time record of 13.3 million. Despite this slight increase, US refineries continued to operate at very high capacity, using 95% of their capacity, down slightly from 95.4% the previous week.

Demand slowdown

Demand for petroleum products in the United States fell by 6% over the week. Although gasoline demand edged up by 1% to over 9 million barrels per day, the “other products” category, which includes refined products used in the petrochemical industry, fell by 28%. This drop in demand also played a role in the increase in inventories.
This publication had a significant impact on the oil market, curbing the rise in prices that had been observed until then. At 15:00 GMT, a barrel of West Texas Intermediate (WTI) for July delivery was up just 0.56% at $78.34, having reached a peak increase of almost 2%.

Market outlook

Fluctuations in crude oil imports and exports, as well as changes in domestic demand, are crucial indicators for market players. The increase in US inventories could signal a forthcoming adjustment in import or production policies to stabilize prices. Market watchers will be keeping a close eye on future EIA publications to assess short- and medium-term trends.
This rise in US crude oil inventories, driven by increased imports and fluctuating domestic demand, highlights the complex dynamics of the oil market. The reaction of WTI prices and potential adjustments to energy policies will be key points to watch in the weeks ahead.

Faced with recurrent shortages, Zambia is reorganising its fuel supply chain, notably issuing licences for operating new tanker trucks and service stations to enhance national energy security and reduce external dependence.
The closure of the Grangemouth refinery has triggered a record increase in UK oil inventories, highlighting growing dependence on imports and an expanding deficit in domestic refining capacity.
Mexco Energy Corporation reports an annual net profit of $1.71mn, up 27%, driven by increased hydrocarbon production despite persistently weak natural gas prices in the Permian Basin.
S&P Global Ratings lowers Ecopetrol's global rating to BB following Colombia's sovereign downgrade, while Moody’s Investors Service confirms the group's Ba1 rating with a stable outlook.
Shell group publicly clarifies it is neither considering discussions nor approaches for a potential takeover of its British rival BP, putting an end to recent media speculation about a possible merger between the two oil giants.
The anticipated increase in the tax deduction rate may encourage independent refineries in Shandong to restart fuel oil imports, compensating for limited crude oil import quotas.
Petro-Victory Energy Corp. starts drilling of the AND-5 well in the Potiguar Basin, Brazil, as the first phase of an operation financed through its strategic partnership with Azevedo & Travassos Energia.
The Texan Port of Corpus Christi has completed major widening and deepening work designed to accommodate more supertankers, thus strengthening its strategic position in the US market for crude oil and liquefied natural gas exports.
BP Prudhoe Bay Royalty Trust is offering its interest in Prudhoe Bay, North America’s largest oil field, as part of its planned dissolution, assisted by RedOaks Energy Advisors for this strategic asset transaction.
CNOOC Limited’s Hong Kong subsidiary and KazMunayGas have concluded a nine-year exploration and production contract covering nine hundred and fifty-eight square kilometres in Kazakhstan, sharing investment and operations equally.
Donald Trump announced that the United States will no longer oppose Chinese purchases of Iranian oil, immediately triggering a drop in global crude oil prices and profoundly reshaping international energy trade partnerships.
Research firm S&P Global Commodity Insights lifts its outlook for the fourth straight year, betting on three point five mn barrels per day from 2025 despite lower prices.
Enbridge plans to expand its infrastructure to increase oil transportation from the American Midwest to the Gulf Coast, anticipating rising exports and addressing current market logistical constraints.
US commercial crude inventories significantly decline by 3.1 million barrels, widely surpassing initial forecasts and immediately pushing international oil prices higher.
The UK could have hydrocarbon reserves twice as large as current official estimates, according to Offshore Energies UK, highlighting the impact of fiscal policies on forecasts and the economic future of the North Sea.
Following US strikes in Iran, international energy companies partially evacuate their teams from Iraq as a precaution, while Lukoil maintains its entire personnel on southern oilfields.
Chinese independent refineries remain cautious amid rising Iranian crude prices driven by escalating Iran-Israel tensions, potentially threatening access to the strategic Strait of Hormuz.
Gazprom, affected by a historic $6.9bn loss in 2023, is offering Pakistani state-owned firm OGDCL its petroleum assets in Nigeria to strengthen its presence in Asia’s energy market, according to Pakistani sources.
Donald Trump urges control of oil prices following U.S. military action against Iranian nuclear facilities, amid escalating tensions around the strategic Strait of Hormuz, threatening to significantly impact global markets.
PermRock Royalty Trust announces a monthly distribution of $539,693 to unit holders, impacted by reduced oil volumes and prices in April, partly offset by increased natural gas sales.