Energy market overview
2022.12.20 01:56
Energy market overview
The United States is indicating a direction shift that ought to bring down the oil market. The fact that the United States is now a buyer from the Strategic Petroleum Reserve (SPR) rather than a seller is a wake-up call to the market, which has been consumed by SPR barrels.
The SPR reported on Friday that the Biden administration began buying back a small, but significant, 3 million barrels of the 180 million barrels of oil it sold. In addition, they announced a switch in fuel from sweet to sour oil to replace the barrels lost as a result of the Keystone Pipeline leak, which shut down that crucial oil pipeline.
In addition, China intends to develop its economy in spite of rising Coronavirus cases. However, today’s China Post reported that gains in Hong Kong stocks were erased as China struggles to contain new COVID-19 infections. This hampered efforts to refocus on strengthening the nation’s economic growth with stronger policy support. At the end of Monday trading, the lost 0.5% to 19,352.81, reversing an earlier gain of as much as 1.7%. The Tech Index went down 0.6%, while the went down 1.9%.
Fears about demand have held back the market, but in reality, demand is not as bad as the market has been pricing in. According to new data from the Joint Organizations Data Initiative (JODI), global oil demand increased by 1.7 mb/d over a year ago in October, up 75 kb/d against the season, as reported by the International Energy Forum. Request development was driven essentially by gains in China, the US, and India.
More Natural gas-analysis
Meanwhile, losses in Russia, Saudi Arabia, and the United States led to a 228 kb/d decrease in global crude production in October. Global crude and refined product inventories increased by 37.9 mb seasonally, despite tighter markets than in September. The five-year average for global inventories is still 406 mb below current levels. In October, crude production was 96 percent lower than it was before the pandemic, and global demand was 99 percent lower than it was before COVID.
