The US crude oil stocks fell more than expected in the last week, while those of gasoline and distillates increased, the Energy Information Administration reported Wednesday. Inventories of crude fell by 3.7 million barrels for the week ending November 18to 431.7 million barrelsin front of the expectations of analysts polled in a Reuters poll of a decline in 1.1 million of barrels.
Thus, commercial reserves are close to a 5% below its average level for the past five years around the same time, according to the EIA. Added to the fall in commercial inventories is that of strategic reserves of 1.5 million barrels, the lowest level since March 1984. On the other hand, the refinery’s utilization rate rose to 93.9%, after standing at 92.9% the previous week.
However, these data were relativized by the increase of 3.1 million barrels in gasoline inventoriesalmost the triple what was anticipated by the operators (1.1 million). Another drawback was the erosion of demand for refined products (-5.7% in one week), which is 8.7% below the level registered in the same period last year.
On the average of the four weeks, gasoline demand -the indicator most considered by traders- fell 6.9% in one year. Is decline rocked the marketwhich was already clearly on the decline.
On the other hand, there are also reports on the progress of a G7 agreement to establish ceilings on the price of Russian crude. the financial journal The Wall Street Journal assured this Wednesday that United States and its allies they could reach an agreement this very day. According to sources close to the matter, the maximum ceiling could be between 60 and 70 dollars a barrelbut this measurement needs a unanimous position, reason why some diplomats see probable that its approval is postponed.
The plan, which was proposed by US Treasury Secretary Janet Yellen, aims to reduce Russia’s revenue for its exports of crude oil and stop the price of oil from rising.
Yesterday, the price of crude oil moved higher after the Saudi energy minister, Abdulaziz bin Salman, denied that OPEC was considering cutting production of oil in anticipation of new sanctions against Russian oil, as some information pointed out.
The range set by the G7 is well above the production costs of Russia and it is higher than what some countries had requested from Brussels. However, the effectiveness of the measure is questioned, because Russia is already selling its crude with discounts similar to the ceiling that the West intends to impose. A limit of these characteristics would have minor implications on global crude supply than originally expected, which is causing heavy losses in oil futures.
Source: Ambito
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