Global Onshore Crude Stocks Edge Down
Global crude oil onshore inventories have been edging slightly lower since mid-May after surging in the aftermath of the invasion of Ukraine, energy and environmental geo-analytics company Kayrros noted in a new report sent to Rigzone this week.
Onshore crude stocks decreased to about 2.97 billion barrels as of August 6, according to Kayrros, which highlighted that that the figure marked a drop of 35 million barrels, or 730,000 barrels per day, from a mid-May peak.
According to a chart included in the report, which contained data stretching back to January 2021, global onshore crude oil inventories were well under 2.9 billion barrels back in January this year before rising to their, current, 2022 peak in May. Last year’s peak was seen before May at around 3.2 billion barrels, the chart showed.
“Global onshore crude stocks edged down from their mid-May peak to about 2,977 million barrels as of August 6,” Kayrros stated in the report.
“Against this backdrop, OPEC+ last week agreed to boost its output by 100,000 barrels per day in September, the smallest increase in quota since 1986,” Kayrros added in the report.
“Growing U.S. tight oil production may help bridge the difference and keep markets roughly in balance amid signs of economic slowdown and sluggish oil demand,” Kayrros went on to note.
The U.S. Energy Information Administration’s (EIA) August short term energy outlook (STEO) projects that U.S. crude oil production will rise from 11.69 million barrels per day in the second quarter to 12.01 million barrels per day in Q3 and 12.28 million barrels per day in Q4. U.S. crude oil production is forecasted to hit 11.86 million barrels per day this year and 12.70 million barrels per day in 2023, according to the STEO, which highlights that 2021 U.S. crude oil production came in at 11.25 million barrels per day.
The latest OPEC+ meeting offered several warnings, including the identification of a “severely limited availability of excess capacity”. The group is currently scheduled to hold its next meeting on September 5.
Oil soared past $100 per barrel for the first time in years back in February as Russian forces escalated a conflict with Ukraine.
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