Expanding Crude Oil Inventories in the United States

CEIC Macro Watch Global #44 - May 29, 2015 US crude oil inventories (stocks) rose to an all-time high of 1,181.9 million barrels on 24 April 2015, rising for a 16th consecutive week before easing to 1,173.4 million barrels by mid-May. With crude oil inventories averaging about 1,177.4 million barrels for the month of April 2015, the total oil stockpile is unusually high, compared to its average level of 1,088.6 million barrels in April 2014. The increase is closely associated with the booming shale oil sector in the US. Total oil production in the US averaged 9.4 million barrels/day in April 2015, an increase from 8.3 million barrels/day during the same month of the previous year. Considering that oil is a durable resource, the rise in crude oil inventories could also be attributed to producers’ willingness to wait for a more favourable price before selling on the market. The benchmark Brent spot price was at USD 65.2/Barrel as of 18 May 2015, higher since the low-point in January, but slipping 41.2% compared to the same week in 2014. Despite incurring an additional cost for storing crude oil, US producers have more incentive to avoid selling at low prices given the high cost of shale oil fracking. By Adrian Dela Cruz in Philippines - CEIC Analyst Discuss this post and many other topics in our LinkedIn Group (you must be a LinkedIn member to participate). Request a Free Trial Subscription. Back to Blog
1st June 2015 Expanding Crude Oil Inventories in the United States

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