CNBC headline: OPEC+ raises output faster than expected as Russia’s war roils global energy markets
* OPEC and its oil-producing allies agreed to hike output in July and August by a larger-than-expected amount as Russia’s invasion of Ukraine wreaks havoc on global energy markets.
* OPEC+ will increase production by 648,000 barrels per day in both July and August.
* The group has been slowly returning the nearly 10 million barrels per day it agreed to pull from the market in April 2020.
Well, isn’t that kind of them.
$117 to $118 per barrel is not exactly chump change - although there are chumps involved in the
Oil Jumps After EIA Confirms Large Crude Inventory Draw
By Irina Slav - Jun 02, 2022, 10:04 AM CDT
Crude oil prices rose further after the Energy Information Administration reported today an inventory draw of 5.1 million barrels for the week to May 27.
This compared with a draw of 1 million barrels for the previous week.
At 414.7 million barrels, U.S. crude oil inventories are some 15 percent below the five-year average for this time of the year.
Same link as the just mentioned oil drawdown. We have this gasoline news:
Refinery runs averaged 16 million barrels daily, with the average utilization rate at over 93 percent. Refinery shutdowns over the last two years have strained existing refining capacity, with the industry warning this utilization rate cannot be sustained for long periods of time.
The fuel squeeze might yet get worse as summer season kicks in across the northern hemisphere while Russian fuel supply abroad shrinks because of the latest wave of sanctions from the EU.
“The crude oil price is $120 per barrel but the product price — what you and I pay for petrol and diesel — is much, much higher. The overarching theme is the lack of investment,” Amrita Sen from Energy Aspects told the FT this week.
“We are in this for the long haul: potentially a decade,” the analyst added.