Yesterday, crude oil prices fell by -0.2% to settle at 6624 after the International Energy Agency (IEA) revealed a notable rise in global oil stocks for March. The increase in oil retained aboard tankers in transit is mostly responsible for the 34.6 million barrel increase reported by the IEA in February.
With the unloading of petrol and crude from tankers and declining exports from the Americas and Russia, this pattern persisted into April. Crude stocks in OECD nations fell to their lowest points in 20 years, however, significant increases were reported in China and other non-OECD nations.
The sharper-than-expected increases in global stockpiles have put pressure on crude prices, despite the usual spring build-in of inventories as refineries undertake maintenance ahead of summer demand. This strain has also been exacerbated by elements like a milder-than-expected winter in the northern hemisphere and worries about sustained rising interest rates.
OPEC claims that OECD stockpiles are still about 38 million barrels below the five-year average. OPEC projects that demand its oil will average 43.65 million barrels per day (bpd) in the second half of the year, indicating a possible 2.63 million bpd depletion if production stays constant at April’s rate.
