According to The American Petroleum Institute (API), crude oil inventories in the United States have increased by 594,000 barrels for the week ending on December 1. This comes after a drawdown of 817,000 barrels in the previous week. Analysts had predicted a drawdown of 2.267 million barrels, but the inventories moved in the opposite direction.
API data shows crude oil inventories in the United States have increased by almost 21 million barrels this year.
The Department of Energy (DoE) reported on Monday that the crude oil inventories in the Strategic Petroleum Reserve (SPR) increased by 300,000 barrels. The total inventories now stand at 351.9 million barrels. The Biden Administration’s buyback program has resulted in the purchase of just over 5 million barrels for the SPR.
Oil prices were trading down ahead of API data release as the market continues to hang on to its disappointment over OPEC+’s resolution to carry over 1.5 million bpd of cuts into the new year, with an additional 600kbpd of voluntary cuts from members other than Saudi Arabia and Russia. At 3:18 pm ET, Brent crude was trading down 0.78% at $77.42—more than $4 per barrel short of where it was this same time last week. The U.S. benchmark WTI was trading down on the day by 0.66% at that time, at $72.56 –just under $4 per barrel below this time last week.
On December 06, bitumen prices in Singapore and South Korea reached 470 and 390 USD, respectively. Singapore’s HSFO and Iran’s bulk bitumen settled at 452 and 292 USD.
Prepared by Rumays specialists group.