Tag Archives | oil inventories

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Oil prices weaken as inventories continue to build

Oil markets are an accident waiting to happen for the chemical industry. Oil inventories around the world are close to record levels, with the IEA (International Energy Agency) reporting they are over 61 days of demand. Equally, as the Petromatrix chart above shows, they are at record levels in the USA (the world’s largest market), […]

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Oil hits $34/bbl

The blog’s oil price forecasts have had a stellar record this year. Last month, with its $70/bbl forecast having been realised, the blog continued to worry about downside risk: “If refiners are forced to cut runs for December, then it would be hard for OPEC to cut its own production quickly enough to compensate. In […]

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OPEC targets stocks, not prices

There is some interesting material on the OPEC website, following this week’s Summit, which clarifies their current strategy. The key points are: • OPEC is currently targeting inventories, not prices. Their policy is to keep OECD crude stocks within the 5 year average. OPEC says its previous production cutbacks ‘minimised the excessive overhangs that existed […]

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