The Energy Information Administration released its Short-Term Energy Outlook for June, and it shows that OECD oil inventories likely bottomed last June 2018 at 2.804 billion barrels. It estimated stocks rose by 38 million barrels in May to 2.902 billion, 84 million barrels higher than a year ago.
However, throughout 2019, OECD inventories are no longer expected to rise any further. At year-end, EIA projects 2019 to be with 2.871 million barrels, 10 million more than at the end of 2018. For 2020, EIA projects that stocks will build 49 million barrels to end the year at 2.920 billion.
The EIA has revised its estimates for future OPEC production down significantly, given the sanctions on both Iran and Venezuela. For much of the balance of 2019 and 2020, it expects OPEC production to remain under 30 million barrels per day. U.S. shale is expected to capture market share from OPEC. Continue reading "World Oil Supply And Price Outlook, June 2019"