HOUSTON: US crude oil stocks have fallen to their lowest level this year and likely will shrink further, analysts said, as record demand, producer supply cuts, weaker futures and rising storage costs all point to increasing drawdowns.
A tight crude market is poised to extend into 2024 and add upward pressure on global oil prices, they said. In a bullish sign, US inventories last week dropped 10.6 million barrels, hitting the lowest level since December 2022’s 420.65 million barrels.
“We are already around 2022’s close and I don’t think we are getting a build in the second half of the year,” said Al Salazar, a senior vice president at energy technology firm Enverus. “$100 a barrel (for Brent crude) is definitely within striking range.”
