Crude oil stocks in the US showed a significant decrease last week, against the background of the increase in the country’s exports to a historic high, as shown by the data of the competent energy authority.
In particular, as the EIA informed, US oil inventories fell by 4.5 million barrels to 422.1 million in the week ended July 22, while analysts in a Reuters survey predicted a much smaller decline. of 1 million
The decline was largely due to an increase in US crude exports, which rose to 4.5 million barrels per day last week.
The spread between European Brent and US WTI futures, or arbitrage, has now widened to more than $9 a barrel, making it more attractive for US companies to sell crude abroad.
“The arb has risen so much, so you may see us break even 5 million barrels in the coming weeks,” notes Mizuho’s Robert Yawger.
At the same time, after two weeks of decline, US crude production rose to 12.1 million barrels per day, up 200,000 barrels per day, the biggest increase since December.
Meanwhile, US gasoline inventories fell by 3.3 million barrels last week.
It is noted that oil prices are moving with a significant increase that exceeds 2%, WTI by 2.8% to 97.6 dollars a barrel and Brent by 2.3% to 106.8 dollars.
Source: Capital
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