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Tighter Crude Market in H2 on Oil De-Stocking: EA

OIL

Energy Aspects expect a tighter market in the second half of 2023, with or without the extra OPEC cuts. They see stock draws by refiners as the main reason why the physical crude market isn’t reflecting the significant draws to come in the third quarter according to Bloomberg.

  • “Stocks are drawing, but due to rising cost of capital, refiners want to hold less inventory than before and so are not bidding for crude in earnest yet.”
  • “Margins are currently strong and, with OPEC continuing to pull barrels from the market, the stockdraws we have all been looking for are imminent.”

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