BAKU, Azerbaijan, May 18. World supply and demand balance in the 1Q2023 implies an increase of 870,000 b/d in stock builds, a source at the International Energy Agency (IEA) told Trend.
According to the data, this is the fourth consecutive quarterly increase in global stocks. In particular, observed stocks grew by 530,000 b/d, mainly in non-OECD countries (up by 480,000 b/d), and oil on water (up by 210,000 b/d), while OECD stocks decreased by 150,000 b/d.
"Global observed oil inventories declined by 7.9 mb in March as a surge in oil on water and a slight increase in non-OECD stocks failed to offset hefty declines in the OECD. Total OECD oil stocks plummeted by 55.6 mb to 3 976 mb, their lowest since 2004 and 397.5 mb below the five-year average. Oil on water swelled by 39.8 mb as exports rose while observed non-OECD stocks built by 7.9 mb. Preliminary data for April show a marginal decline, with stock builds in on land inventories and a draw in oil on water," the source said.
However, IEA forecast indicates a significant reduction in stocks starting from the second quarter through 2023-end.
"In March, observed stocks fell by 250,000 b/d, largely in line with our implied balance. OECD industry stocks plunged by 1.8 mb/d, with a draw of 160,000 b/d of crude, NGLs and feedstocks and a hefty 1.7 mb/d decline in oil products. OECD government inventories built by a marginal 20,000 b/d. Non-OECD crude stocks rose by 210,000 b/d while product stocks at Fujairah and Singapore inched up by 50,000 b/d. Oil on water surged by 1.3 mb/d, led by oil products. The latter likely reflects the impact of European sanctions that definitively blocked Russian product imports starting February," the source added.