Daily Energy Report
Global oil inventory, Red Sea ship attacks, Global coal outlook, Gas contracts, Andurand’s bad oil bets, Biden admin eyes Exxon taxes, Suriname attracts majors, and more.
Chart of the Day: What are Global Inventories and Oil on Water Telling Us?
Figure (1) above shows trends in global commercial oil inventories. It shows that 2023 levels were way higher than that of 2022 and that inventories have been increasing in recent weeks.
Global oil inventories are one of the important indicators needed to understand the oil market. While global oil inventories explain why market sentiment is not bullish, there are other factors. Recessions and low economic growth in some countries are among them. Today we will focus on inventories in general. Most of the increase in global oil inventories was in the US and China.
Figure (2) below shows trends in commercial inventories in China. They show the same story: inventory levels in 2023 are higher than that of 2022 and inventories have been increasing in recent weeks.