(Oil and Gas 360) - Supply expectations are high, demand expectations are low, running counter For us, the consensus on providing demand data is set to be brief.

WTI crude is priced below $60, reflecting a lot of fear plus news that OPEC+ will increase production. Organization of the Oil Exporting Countries (OPEC), + Other World Exporters announced Monday that production restrictions in June would increase by 411,000 barrels per day, bringing the spot market price of West Texas Intermediate (WTI) crude oil below $60 per barrel (Figure 1, red line, red line). More supply combined with concerns about inflation, tariffs and recession adds uncertainty, which can also minimize expectations of demand and exaggerate.

Cushing’s crude oil stockpile (the delivery of future contracts) has been lowered despite additional price expectations. Crude oil inventories in Cushing Oklahoma (NYMEX futures contract) in Cushing Oklahoma, Oklahoma, lowered its lows as the year began (Figure 2, red line), dragging the WTI spot price to $80 a barrel (Figure 1). It then increases to the height of the early highs and lowers the price. However, this stock is still low, and we predict: the next drop.

Increased U.S. crude inventories have helped oil bearish since early January. Still, it's 21.2 MMB less than last year. As the year begins, the total U.S. crude oil inventories fell to multi-year lows (Figure 3, red line) helped the WTI price rise to $80 (Figure 1). It then added 31.4 million barrels (MMB) to 443.1 assistants on April 18. The decline is below $60, and despite inventory presence dropping by 4.7 MMB in the past two weeks, it encourages our conclusion that the exaggerated price cut opportunity is in place.

Analysis also helps most people realize that more crude oil is needed in the summer. Refinery operations show year-on-year growth (YOY) growth (Figure 4, red line vs. blue) help our commercial crude oil inventories show a good drop to January lows (Figure 3). The increase in Yoy refinery running changed to mid-March helps lower pressure prices and expectations. Now, with hours of sunshine increasing and a lot of running encouraged, running needs to increase summer.

Written by oilandgas360.com and contributor Michael Smolinksi

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