BAKU, Azerbaijan, December 19. World observed inventories fell by 23.2 million barrels (mb) in October as product stocks fell for the first time since March and crude oil saw a smaller build, Trend reports via the latest oil market update from the International Energy Agency (IEA).
"OECD industry stocks increased by 17.3 mb, to 2 765 mb, narrowing the deficit versus the five-year average to 150.2 mb, but OECD government stocks fell by 19.9 mb. Preliminary data for the US, Europe and Japan show industry stocks increased by 3.1 mb in November," the report said.
As the IEA explained, the decline in OECD countries' government reserves has led to a sustained increase in inventories of land-based industries, despite fluctuations in crude oil prices relative to those of products, which have led to their fall to the lower end of the five-year range.
"Global stocks remain low as the market heads into a period of significant uncertainty with the beginning of the EU Maritime Services Ban and G7 Price Cap. Observed global inventories have remained roughly flat for several months at their five-year lows. Oil on water built substantially throughout 2Q22 and 3Q22, but remains locked-up due to changes in crude shipping routes," the report said.
However, recent data show a renewed overall decline in inventories, again making the market more sensitive to changes in the supply and demand balance, the agency added.