Oil inventory surveys this week indicated enormous drawdowns:
- Oil hammered despite record US weekly draw. Eyes on Saudi Arabia
- Private oil survey data shows huge headline crude draw, MUCH larger than expected
ANZ's wrap-up of Wednesday's moves explains:
- ... a sharp drawdown in inventories. US commercial stockpiles fell by 17,049kbbls last week, according to Energy Information Administration data. While it was the largest ever fall in volume terms, it was viewed as an anomaly due to adjustment factors the EIA uses to calculate industry inventories. Even so, it highlights the tightness in the market that is emerging amid falling OPEC output.
More:
- Bloomberg tanker tracker data showed the Saudi Arabia exports fell to their lowest level in almost two years. Iran, Kuwait and Libya also shipped less. This comes as OPEC’s Joint Monitoring Ministerial Committee meets this week to review its adherence to the current production agreement. There is unlikely to be any discussion of changing that agreement.
- However, the EIA inventory report did also raise some red flags. Gasoline demand fell for the fourth straight week on a rolling four-week average, despite the country being in its busy summer driving season. Gasoline inventories also rose.
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Earlier on oil:
