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Photo: Bloomberg |
Amid a global pandemic of the COVID-19 pandemic that is driving global demand for oil, oil stores continue to fill at an alarmingly fast rate in the US. In the USA, forcing drilling companies to stop production and create a lot of congestion with oil tankers off the coast of the United States.
An analysis by Rystad Energy reveals that 28 Saudi tankers carrying a total of 43 million barrels will arrive in the US. USA Between April 24 and May 24, Oilprice reports.
The Saudi oil-laden navy at Ras Tanura, Saudi Aramco’s port of departure through which the United Kingdom’s state oil company ships oil to the rest of the world, will join the massive congestion of 76 tankers currently awaiting discharge. in American ports. . Most of these tankers are located on the west coast, where 34 tankers wait in line to land about 25 million barrels of crude oil. Another 31 tankers await on the Gulf coast.
In recent days, the congestion situation with oil tankers has deteriorated as refineries cancel or delay oil purchases due to a sharp decline in fuel demand.
“The total volumes expected to reach Ras Tanura are four times higher than the previous four-week average imports from Saudi Arabia.” Given the current stock situation and the amount of congestion on the US coast. In the US, we believe that it is unlikely that all tankers will be able to land upon arrival. The landing in the ports of EE. USA It has reached new highs, “said Paula Rodríguez-Masu, senior oil analyst at Rystad Energy.
If all Saudi oil tankers are unloaded, the raw material they transport will offset almost all production from March levels in May, effectively maintaining current high storage levels.
Restricted oil storage increasingly worries oil markets and is one of the main reasons prices have dropped sharply in recent weeks, with US WTI crude oil even operating at negative price levels just a few days ago. .
Before the release of official stock data for week 17 (ending April 24), crude oil reserves totaled 518.6 million barrels, which is almost 9% above the annual average for this time of year and only 16.9 million barrels below the record of 535.5 million barrels reached in the spring of 2017.
According to Rystad Energy, although the US oil refineries. USA They have fallen by more than 3 million barrels per day in the past four weeks, the International Energy Agency (IEA) says that oil production has been reduced by just 800,000 barrels per day.
“We expect another 800,000 barrels per day to drop in the coming weeks. However, oil imports are projected to remain at around 5.8 million barrels per day for the next four weeks as Saudi shipments are rapidly approaching the American coasts “, concludes Rodríguez-Masu.
Oil production in the United States has tended to drop dramatically in May and June as operators discontinue part of their drilling operations due to raw material storage limitations and low oil prices.
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