with Agency report
24 September 2017, Sweetcrude, Lagos — Commercial oil stocks in the Organisation for Economic Co-operation and Development, OECD fell further by 168 million barrels per day in August.
According to data obtained by SweetcrudeReports from the Organisation for the Petroleum Exporting Countries, OPEC, the crash difference to the latest five-year average was 168m barrels since the beginning of this year, remaining another 170m barrels of stock overhang to be depleted.
OECD is an intergovernmental economic organisation with 35 member countries, founded in 1960 to stimulate economic progress and world trade.
Members of the organization are the likes of United States, United Kingdom, Australia, Austria, Belgium, Canada, Chile, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Israel, Italy and others.
OPEC said fall in oil stocks of OECD contributed to factors in the oil markets that influenced the ongoing rebalancing process.
Chief among the factors that affected OECD’s stock is the ongoing hurricanes that struck the U.S since late August.
According to Forbes, U.S. refining capacity is now estimated at only 30%, adding that many refineries have closed due to the flood.
Also, the Motiva refinery has limited production to 40%, with the Colonial Pipeline experiencing disruptions that has impacted the delivery of product to the southeast.
Shale crude oil producers are also curbing production.
Hurricane Harvey and others also affected offshore production in the Gulf of Mexico, curbing over 379,000 barrels per day, representing over 22 percent of crude of total Gulf production.
Some companies have also suspended fracking operations in parts of south Texas.
For example, XTO owned by ExxonMobil shut all production in the path of Harvey and evacuated all staff.
Chesapeake Energy also cut back 1.2 percent crude oil production until refineries in Houston and the Gulf Coast come back online.
As at September 1, the International Energy Agency, IEA, said there was a high level of stocks in the affected regions and in the US as a whole.
“These stocks are being supplemented by imports of gasoline to the East Coast of the United States and the US Secretary of Energy has taken action to ease localised crude-oil shortages in Texas, by providing crude-oil loans from the US Strategic Petroleum Reserve”.
However, IEA has been mum ever since at providing data to determine the real damage of the hurricanes to the U.S oil sector.
Last week, U.S Energy Information Administration, EIA, revised down its outlook for shale oil producers in September by 145, 000 b/d to just 6m b/d.
It previously estimated this month’s production would be 6.15m b/d.
The group also said shale oil production growth will drop by 21, 000 b/d in October, as a result of the hurricanes.
The EIA projected crude oil output from several shale oil and gas producing regions will grow by 79,000 barrels a day in October, 21, 000 b/d below 100, 000 b/d, marking EIA’s first-time-drop forecast in seven months.