BAKU, Azerbaijan, Feb.9
By Leman Zeynalova – Trend:
Global oil inventories declined again in January, contributing to commercially held inventories in OECD countries reaching the lowest levels since mid-2014, Trend reports with reference to the US Energy Information Administration (EIA).
EIA notes that a major contributing factor to the low global oil inventories is some OPEC+ countries producing less than their targeted amounts due to operational difficulties ramping up production.
“During 4Q21, we estimate that the 10 OPEC countries subject to production targets produced less than those targets by a combined average of more than 0.6 million barrels per day (b/d). More recently, geopolitical conflicts have also put upward pressure on oil prices. Prices can be more sensitive to concerns about supply disruptions during periods of low inventories. Tensions related to Ukraine have increased market concerns about the possibility of oil supply disruptions. In the Middle East, several missile attacks on Abu Dhabi—one of which hit a fuel storage facility— has added to uncertainties for future oil supply, which may also be affected by political unrest in Libya and Kazakhstan. Libya’s oil production has increased following blockades that shut in crude oil production in late December and early January, and production in Kazakhstan has increased following disruptions that occurred during protests from January 2– January 11 related to higher liquefied petroleum gas prices,” reads the report published by the EIA.
The report says that concerns about low oil inventories and potential supply disruptions have outweighed downward price pressure from China’s announcement that it will release crude oil from its national strategic stockpiles.
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