Below is a brief on the OPEC and IEA reports released today, together with our comments on the decline in demand. While demand is not consumption, supply is not production. An important fact to keep in mind looking at today’s numbers.
We also explain how Sec. Write arrived at the 9 mb/d figure for flows crossing the Strait of Hormuz. The EIA released its weekly report at the time of this writing. It showed a massive increase in crude oil inventories; +17.4 mb! We will send a detailed report this afternoon.
Demand
OPEC and the IEA released their monthly oil market reports today. Both highlight the impact of the Strait of Hormuz disruption, though their estimates differ. The key takeaway is that demand has declined significantly. It is important to distinguish demand from consumption: demand includes changes in inventories and can therefore be higher or lower than actual consumption at any given time.