The Energy Report: COVID, Oil Supplies Moving In Opposite Directions – Investing.com

The Energy Report: COVID, Oil Supplies Moving In Opposite Directions – Investing.com

COVID cases are going up, but oil supplies are going in a different direction. The Wall Street Journal reported that the seven-day average of daily reported COVID-19 cases in the U.S. reached a pandemic record of 403,385 on Sunday, according to Johns Hopkins University data. Yet oil supplies, oddly enough, are falling and not just a little bit but a lot, what will most likely have further implication on . 

Not only should we see another substantial draw in U.S. this week, but also, globally, supplies are tightening. Alexander Stahel pointed out that global crude inventory declined by 16.4 mb last week again. Reuters also reports that the oil supply is likely to have fallen by 3.4 million bbls last week. So global supply is falling by 2.3 million barrels per day.

Gasoline and distillate fuel stocks are seen rising by 3 million and 2.7 million bbls, Yet we see a draw of 4 million barrels on crude and draw gasoline of 2 million, and distillates by 2.5 mb.