Weekly Oil Data
Inventories, Exports, Imports, and Refinery Utilization
MAIN TAKEAWAY
The Energy Information Administration (EIA) reported today a small build in crude inventories, but almost double what was expected, and close to the API number released yesterday. The EIA also reported a relatively large draw in oil products.
Meanwhile, crude exports rebounded, climbing to over 5 million barrels per day (mb/d) along with inputs into refineries, while demand remains lackluster.
The price action today (Brent was around $73/barrel at the time of this writing), shows that falling oil prices have nothing to do with oil market data and inventories. It is all about macro factors— fears of a financial crisis after the collapse of the Silicon Valley Bank (SVB) and two other banks, and fears of a recession.
We do not expect OPEC+ to take action at this stage. However, everyone in the industry needs to pay attention to the Saudi and Algerian reactions to the proposed NOPEC Act which has been reintroduced by a group of US senators on the Judiciary Committee, and the idea of imposing a price cap on OPEC oil exports.