Americas: Declining Runs, Inventories Signal Looming Storm

Copyright © 2023 Energy Intelligence Group All rights reserved. Unauthorized access or electronic forwarding, even for internal use, is prohibited.
Steve Bruckmann/Shutterstock

In North America, the Omicron variant's wave seems to be peaking in a bullish development for demand. While this points at some normalization, fuel flows might be in flux soon. In parts of Latin America, and particularly Mexico, industry players are looking to get more insular. Also, a showdown with Russia looms, which could have Europe asking for more US crude and products, while Russia might cut off exports to the US. All these developments take place against a backdrop of low product inventories and a much-reduced downstream footprint in the US, leaving little cushion to catch up to draws, meet overseas demand and replenish tanks.

Oil Products, Oil Trade, Oil Inventories
Wanda Ad #2 (article footer)
Now that the war premium has evaporated on ongoing Russian supplies, Brent's $75/bbl doesn't look outrageous based on fundamentals.
Tue, May 23, 2023
The market seems to think Opec-plus' moves will be drowned out by sluggish demand and rising non-Opec supply.
Tue, Jun 6, 2023
The region has seen some growth in throughput capacity, unlike many other areas.
Mon, Jun 5, 2023