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Oil Tighter than Prices Imply With Stockpile Decline in Feb: StanChart

OIL

Global oil inventories are expected to decline by 1.6mb/d in February following a smaller than normal build in January according to Standard Chartered.

  • “The market is much tighter than current prices might imply.”
  • Inventories saw a “smaller than usual” seasonal build of 300kb/d in January compared to an average build for January of around 1.2mb/d.
  • Strengthening global balances are also reflected in weekly US data as further increases in US crude oil output “will not be sustainable in 2024.”

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