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U.S Gasoline Supply Piled Up


二月, 21 2017
watermark Economic news

Crude oil prices stayed in the holding pattern as it awaits for a much clearer data regarding the possible consequences. OPEC have largely complied to support and keep prices away from debts while the increasing oil manufacturing in the United States serves as a counterbalance. Another problem had risen as the gasoline inventories unexpectedly rack up towards a surprising level.

According to EIA, the US crude production recorded 259 million barrels, reaching its highest level upon tracking back its data in 1990, making the worst gasoline glut after 27 years. The glut is caused by high volume of production by which the manufacturing in U.S. continuously expands towards a range of 9 to 10 mb/d.

The rising stocks for oil emerged due to the possible offline maintenance by the refiners, however, it is much more expected that the stockpile would decline. While the current case is that the inventories for refined products and crude both climb higher, therefore, the market has something to worry about. Moreover, the increase helped sustain the rising demand for oil.



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