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Global Crude Stocks Fall Since Mid July


Global oil inventories fell sharply in the last month due to OPEC+ production cuts and resurgent demand according to Bloomberg.

  • Global onshore stockpiles were about 3.37bn bbls on 23 Aug, a decline of about 60mbbls from a month earlier according to Kpler despite a recovery since 15 Aug.
  • Much of the reduction was seen in China, with record operating rates at state-owned processors according to OilChem.
  • US inventories have also been steadily falling for months and are now at the lowest since early January.
  • The current stockpile drawdowns are likely to continue even if voluntary cuts by Saudi Arabia and Russia are fully reversed in the final quarter, said Paul Horsnell at Standard Chartered Bank. “If the cut is extended or deepened, then the draws will be larger than our current fourth-quarter projections,” he said. “Wouldn’t say the position is precarious, but the reduction of inventories certainly supports higher prices.”

Source: Bloomberg

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