Monthly US crude oil imports from OPEC fall to 30-year low

Daniel Fowler
June 16, 2019

U.S. crude oil refinery inputs increased during the week ending June 7, the U.S. Energy Information Administration (EIA) said Wednesday. The market expectation was a decline of 0.5 million barrels. "This has resulted in a slowdown in global economic activities, and weaker growth in global oil demand".

"It is constant concern about the demand outlook because of what's happening with the situation with China", said John Kilduff, founding partner at energy hedge fund Again Capital.

U.S. West Texas Intermediate crude futures were up $1.06, or 2.1%, at $52.22 a barrel.

In a separate report, the API stated that USA crude stockpiles increased by 4.9 million barrels during the week ended June 7 to 482.8 million barrels, while the analysts expected a decline by 481,000 barrels. Brent oil futures have declined by 2.26% by this time.

Stocks jumped by 6.8 million barrels during the previous week.

President Donald Trump on Tuesday said he is holding up negotiations until Beijing agrees to return to the terms of negotiations laid out earlier in trade talks.

OPEC members initially planned to meet on June 25 to update the production policy for this year.

Iran Denies US Claim That It Attacked Tankers In Gulf Of Oman
Tehran has said it could block the Strait of Hormuz, the main route out for Middle Eastern oil, if its own exports were halted. The UN Security Council met behind closed doors on Thursday and discussed the attacks at the request of the United States.

OPEC, in its 2019 Annual Statistical Bulletin, put the value of Nigeria's petroleum exports at $75.196bn in 2014; $41.168bn in 2015; $27.295bn in 2016; $37.983bn in 2017, and $54.513bn in 2018.

In 2018, the US Gulf Coast region (defined as Petroleum Administration for Defense District 3) imported 1.4 million bpd of OPEC crude oil, or 55% of the national total of OPEC imports.

Goldman Sachs stated in a note that OPEC might extend the supply cuts due to the uncertain macroeconomic future and volatile oil production from Iran among others.

In its latest Short-Term Energy Outlook (STEO), EIA forecast global liquid fuels supply will rise by 2.0 million barrels per day (b/d) in 2020, with 1.4 million of that growth coming from the United States.

Oil prices rose on Tuesday in line with firmer financial markets and bolstered by expectations that producer group OPEC and its allies will keep withholding supply.

Gasoline inventories increased by 0.8 million barrels, or 0.3%, to 234.9 million barrels during that period, coming nearly in line with the market expectation of a rise of 0.74 million barrels.

"Fundamental uncertainty on the current and forward states of the global oil market is high", Goldman said".

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