120mn bbls of Crude Over Supply Before Run Cuts: Energy Aspects

There is another 120mn bbls of crude oil overhang to be absorbed before run cuts occur according to Energy Aspects.

• “There is still a crude overhang to run down, meaning there is ample supply to go around while crude is tightening - only once the crude excess is gone can we even contemplate run cuts” Energy Aspects said.
• “Crudes will have already been secured for May–June deliveries, margins may have been hedged, and running generates cashflow to cover ‘sticky’ operating costs - a tough battle between Europe and Asia awaits, and Asia could outbid Europe for barrels, potentially triggering European run cuts to balance the crude market”