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Inventories Build Again
The latest report from the Energy Information Administration showed that US crude stockpiles rose to their highest level on record in the week ending June 5th.
Crude levels rose by a further 5.7 million barrels to 538.1 million, marking a record build.
Crude demand has been heavily impaired this year due to the COVID-19 lockdowns. And, given that demand had already been weakened by the two-year US/China trade war, the market has been steadily moving deeper into a state of oversupply.
Spike in Imports
The EIA noted that the increase in stockpiles was a result of a large increase in imports. More specifically, the imports from Saudi Arabia, while export levels had fallen sharply.
Imports agreed upon during the March-April period when prices had crashed due to the Saudi-Russia price war, have been arriving in the US. This has led to the uptick in stockpile levels.
Refiners noted an increase in Saudi imports of an average of 1.5 million barrels per day for the last ...
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