Global Crude Oil Inventories Rising

Global crude oil inventories have been rising prior to a European embargo on Russian crude imports due to take effect on December 5, energy and environmental geo-analytics company Kayrros noted in a new report sent to Rigzone.

“Global onshore crude oil inventories built by nearly 70 million barrels in the last four weeks, or close to 2.5 million barrels per day, reaching the highest weekly average since September 2021,” Kayrros stated in the report. 

“On its face, the gain does not appear to support calls for increased OPEC output ahead of the producer group’s December 4 meeting and the coming into effect of the EU embargo on Russian crude imports on December 5,” Kayrros added.

According to Kayrros, China alone accounted for more than half of the estimated build in global onshore crude oil stockpiles.

“Its crude inventories gained roughly 36 million barrels from end-October to end-November, or ~1.3 million barrels per day, led by East China, Shandong Province and Southern China,” Kayrros said.

European onshore crude oil inventories also edged up in the last four weeks to reach their highest level since July 2021, Kayrros outlined.

“By end-November, the region’s crude stocks were roughly on par with their pre-Covid levels at this time of year,” the company stated.

Middle East and North Africa crude oil inventories also “extended the rising trend begun in early August”, Kayrros noted, adding that the region grew by an estimated nine million barrels in the last four weeks.

“The UAE, recently described in media reports as angling for an increase in OPEC production targets, led the latest build,” Kayrros highlighted.

In a separate report sent to Rigzone earlier this month, Kayrros noted that crude oil inventories held in onshore crude tanks had been edging lower.

“Most recently, a drop in Japanese stocks, partially reversing earlier builds, has been leading the global decline,” Kayrros stated in that report.

In a statement sent to Rigzone last month, Kayrros said global onshore crude stocks had been flat for several weeks and crude supply and demand in balance.

To contact the author, email andreas.exarheas@rigzone.com