On June 8, Wednesday, in Singapore the oil prices have increased predicting a report of low U.S oil stocks while the demand would be high in upcoming driving season. Analysts expect data for last week to show another downfall in U.S crude inventories with the chances of distillate and gasoline stocks rising higher.
OANDA analyst Edward Moya has stated that the oil market is expected to remain tight as the supply side will continue to tell the story of low inventories as driving season and vacationing heats up. However, American Petroleum Institute figures show the rise in U.S. crude and oil products inventories.
The World Bank on Tuesday has reduced its global growth forecast foe 2022 by nearly a third, warning that many countries now face recession due to Russia’s invasion of Ukraine as well as the already damage created by Covid-19 pandemic . Meanwhile, global crude and oil product supplies remain tight due to Western sanctions restricting exports from major producer Russia.
The CEO of global commodities trader Trafigura has reported that oil prices could soon hit $150 a barrel and might go higher this year with economy destruction due to high demand b the end of the year. Most refineries globally are already running very close to capacity to meet rising demand from the pandemic recovery and to replace lost Russian supplies.
Analyst JP Morgan estimated that Russia has slashed down oil product exports from 500,000 to 700,000 barrels per day because it now finds marketing of oil harder than marketing of crude. Unless China lifts its roduct export caps or new Middle East capacity comes online the shortage of clean products will only get worse as demand for transport fuels picks up during the northern hemisphere.