Could Shale Oil Drillers Risk Price War with OPEC?
April 15, 2021
The DOE inventory report had crude down more than expected, gasoline stocks up less than expected and distillates down big when a build was expected. Prices rallied hard on the inventory numbers.
Crude was down 5.89 million barrels putting total stocks at 492.423, 11 million less than last year but 30 million more than the three year average. Cushing, Ok crude stocks were up 346,000 barrels putting stocks at 46.668, 8.2 million less than last year and 1.89 more than the three year average.
Gasoline stocks were up 310,000 barrels putting total stocks at 234.897 million barrels, 27.3 million less than last year and 7.149 million less than the three year average.
Distillates were down 2.08 million barrels putting total stocks at 143.464 million barrels which is 14.46 million more than last year and 16.119 million more than the three year average.
Propane stocks were up 1.016 million barrel putting total stocks at 40.588, which is 16.192 million less than last year and 7.712 million less than the five year average. The build was bigger than expectations and propane prices were down slightly.
Saudi Arabian oil facilities near the Yemen border were targeted again last night with drones and missiles for a second time in a week. No damages have been reported.
Pioneer Natural Resources Co.’s Chief Executive Officer, Scott Sheffield, warned that shale drillers risk another price war with OPEC and its allies if they resume the production growth of the last decade.