What Oil Bulls Don’t Know About Global Inventories

11 Jul 2017   Oil Supply

Dispensing his usual dose of optimistic crude oil buzzkill, Bloomberg energy strategist Julian Lee points out something troubling to both OPEC and those who are hoping that the latest dip in oil will finally lead to a sharp rally. He writes that while at first glance, this year’s diminishing U.S. oil stockpiles appear to support the notion OPEC is finally getting the global crude glut under control. Surging exports mean that the market should treat that idea with caution. The problem is that, as has been the case over the past year, stockpiles aren’t coming down because the oil is being used, it’s just being moved overseas. And nowhere is this more visible than in the record amount of oil exported overseas. First, the good news. In the last week of June, the EIA reported the biggest drop in combined crude and refined-product stocks (including SPR stocks) in four […]

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