Russian Oil Production Dipped in Early 2024
May 21, 2024
Global petroleum inventories were up slightly week over week and the trend of inventory builds continues in diesel, gasoline, and total petroleum inventories. Global total diesel inventories are slightly above their 5-year average (not seasonally adjusted). Global diesel inventories remain below their seasonal averages but have drawn by the fewest amount year to date since 2020.
Energy prices are down to start today as the market appears concerned about demand here this morning. There were hopes that the Fed might cut rates in June or July and if not then most likely in September, but that may have been a bit too optimistic. If there is no rate cut, then demand could be impacted negatively and that is the issue here this morning as prices move lower.
Russia remained China’s top oil supplier in April, for a 12th month, with volumes increasing by 30% on the year.
Russia’s President Vladimir Putting said Russian oil output in the first four months of the year had fallen by 1.8% to 195.7 tons, a decline largely due to production cuts under the OPEC+ agreements.