Oil Price Stagnation: rise in US crude oil stocks partially explains it...

 

crude oil stocks



Oil price has been seesawing worryingly in the last few days, reflecting the volatile nature both in the political and economic realms, partly being shored up by the pandemic and the possibility of its ‘second  coming’.

The demand has been very low and it’s understandable in the current circumstances.

Analysts, however, appeared to have overlooked a significant factor that the EIA, the US Energy Information Agency, identified that determines the oil price – the oil inventory build-up.

The EIA said on Thursday that US crude stocks rose by 2 million barrels a day when the analysts estimated a drop of 1.3 million barrels a day – a strange reversal of figures – in the week leading to September 4.

The EIA particularly blamed the rise in stocks on Hurricane Laura that hampered the activities at the refineries. In addition, the weak demand in jet fuel and gasoline contributed to the surge in stocks.

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