Post by
Duxing on Nov 08, 2017 8:16am
US total crude inventory dropped 102m barrels since March
End peak. 54m barrels to be reduced to break through 5 year average, which is the so called inventory target set by OPEC cut.
From March 31 to October 27, that 30 weeks. Average weekly inventory drop is 3.4m barrels.
This tells it will take another 15.9 weeks or less than 4 months (by Feb 20) so that inventory level goes down to 5 year average.
This is does not account that Average level is rising through time.
By Feb 20, US crude dropped under 5 year average, OPEC May continue cut production by another 10 month. Guess what is going to happen!
you may argue that US and Canada production is rising. However, such increase has no way to compensate demand grow of 1.2m bpd as forecast by IEA!