Daily Energy Report

Sidi Kerir oil inventories are low, India buys Sokol oil, Biden’s LNG gift to Putin, Oil price boom/bust, US gas drillers cut spending, Australia nickel bailout, and more

Chart of the Day: Oil Inventories at Sidi Krier in Egypt are Lowest in Years

Summary

Figure (1) above shows weekly oil inventories at port Sidi Kerir on the Mediterranean Sea in Egypt. Inventories are now at their lowest levels since at least the beginning of 2017 when Kpler started collecting weekly inventory data. 

EOA’s Main Takeaways

In recent days we discussed the point that the large decline in world oil inventories in January that was reported by the IEA is NOT that bullish. We emphasized the point that part of the decline is related to delayed shipments as some tankers had to go around Africa instead of going through the Red Sea. We also explained China’s behavior. The decline in inventories is designed to prevent oil prices from increasing.