The volume of crude oil held by private companies that are unable to sell the product due to the novel coronavirus (COVID-19) crisis looks to set an all-time high in the weeks ahead, according to data released by the US Energy Information Administration (EIA) in a press release on Thursday
WASHINGTON (Pakistan Point News / Sputnik - 30th April, 2020) The volume of crude oil held by private companies that are unable to sell the product due to the novel coronavirus (COVID-19) crisis looks to set an all-time high in the weeks ahead, according to data released by the US Energy Information Administration (EIA) in a press release on Thursday.
"From March 13 (when a national emergency was declared in the United States) to April 24, US commercial crude oil inventories increased by 74 million barrels (16 percent) and are now 8 million barrels below the record-high value set in March 2017, according to data in the US Energy Information Administration's (EIA) weekly series that dates back to 1982. Commercial crude oil inventories for the week ending April 10 increased by 19.2 million barrels, the largest weekly change in EIA's data," the release said.
The oil glut stems from a sharp drop in demand as a result of reduced economic activity and stay-at-home orders intended to slow the novel coronavirus spread, the release said.
As US refiners quickly cut the amount of crude oil and other petroleum products processed in response to falling demand, crude producers have not responded as quickly by cutting output, the release added.
In addition, a dispute between Russia and OPEC leader Saudi Arabia over cuts in oil output has contributed to swelling inventories, according to media reports.
