Sunday, February 24, 2013

Oil Stocks Declining Globally Except US

According to the U.S. Agency for Energy Information (EIA), global oil inventories fell by 1.3 million barrels per day in last 60 days. A situation largely due to consumption exceeds production. On average over the last two months, stocks have been valued at 2.652 billion barrels; while the figure of 2.649 billion was recorded in the same period of 2012.World production meanwhile was 83.3 million barrels per day in January and February, against 83.4 million in the comparable months of 2012. At the same time, consumption has reached 86 million bpd, against an average of 85.3 million in January-February 2012.

 Information on global stocks comes as the abundant supply overseas increasingly worried investors. Fears, which increased Wednesday following the release of statistics showing an increase in the trend. According to the weekly report from the U.S. Department of Energy on oil reserves, U.S. crude oil inventories rose 1.1 million barrels in the week ended Feb. 22. Experts noting they are now at their highest since July to 377.5 million barrels. Situation was due to both less energy consumption than a sluggish increase in crude oil production of 14.6% in 2012 compared to the previous year in 2012, something that had not been observed since 1995. A context that could worsen in the absence of agreement on the U.S. budget obtained - in extremis - Congress on Friday. Such an outcome automatically opening the way for drastic cuts could lead the United States into recession. Means lower demand for crude.


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