OILX - U.S. Crude Storage Will Build In February But May Surprise To The Downside
Welcome to the surprise to the downside edition of Oil Markets Daily!
U.S. crude imports surprised last week showing a drop to just ~7 mb/d, the lowest reading over the last 3 years for that week.
Readers should expect the trend to continue thanks to increasing 1) U.S. shale production, 2) lower OPEC exports to U.S., and 3) Venezuela sanctions. Point 2 and 3 will become more evident in February as U.S. refineries go into peak maintenance season. Our U.S. crude storage forecast shows February balance to show a build of ~18 mbbls versus the