Bastien Chenivesse on LinkedIn: Depleted Oil Inventories Increase the Risk of an Abrupt Supply Disruption:…
Depleted Oil Inventories Increase the Risk of an Abrupt Supply Disruption:
US oil inventories, both commercial and especially the emergency stockpiles, are…
Bastien Chenivesse
"Depleted Oil Inventories Increase the Risk of an Abrupt Supply Disruption:
US oil inventories, both commercial and especially the emergency stockpiles, are still depleted.
In case of a sudden supply shortfall, oil prices could spike quickly as there are insufficient reserves in the system to form an adequate supply buffer.
Even if US production has increased by about 1.3ml barrels per day and Iranian production increases have added another 1ml barrels a day since September of 2022, OPEC has cut production by about 2ml barrels during the same period of time.
Supply therefore has remained rather stagnant while world demand has increased by about 1.3ml barrels y/y. This is leaving the market rather tight!"
