What gets overlooked sometimes in the discussion on U.S. crude exports is that the country is still importing more than 8 million barrels per day.
The reasons for the positive demand revisions come from every region of the global oil market, with stronger economic activity the main reason for the more optimistic outlook.
SAFE's Fact Pack summary for Q4 looks at recent trends in oil market fundamentals and transportation while also focusing on how American innovation can help job growth in the transportation and domestic energy sectors, a key development that will lessen the country’s dependence on OPEC imports.
Nothing will change materially in the oil market until there’s a significant stock draw, a development that appears doubtful, which could ultimately force OPEC to change strategy once again.
The sharp increase in gasoline inventories since the end of last year has raised some concerns, helping deflate the bullish sentiment that has permeated the oil market over the past few months.
Besides today’s costly oil disruptions, the government in Nigeria is preoccupied with the ISIS-affiliated Boko Haram in the north and sectarian strife elsewhere.
While U.S. crude production hasn’t fully recovered, it has increased by more than 300,000 b/d since September to average just under 9 million barrels per day. As a result, the OPEC-fueled boom in prices has stalled for the time being.
Despite baggage old and new, the Saudis and the greater GCC are ready and willing to do business with Russia even if their visions for the Middle East don’t align.
The group has been adamant about putting together a united front to show that it will follow through with production cuts and counter critics who doubt its willingness or capability to do so.
The OPEC commission would examine whether the cartel’s behavior is designed to disadvantage U.S. oil producers and secure market power through anti-competitive behavior.