Crude oil inventories in the United States rose last week to a record high as refineries increased imports, especially from Saudi Arabia. While exports fell to lows that have not been observed since November, reports Reuters. On Wednesday, the Energy Information Administration (EIA) said demand for petroleum products had grown, but still remained well below normal levels.
According to the EIA (.pdf), crude oil inventories rose 5.7 million barrels a week before June 5, to 538.1 million, most of all in history, not counting US strategic reserves.
Saudi Arabia previously raised crude oil export prices, the most significant increase in at least two decades. Thus, Riyadh strengthened its strategy to support rising oil prices a day after the OPEC + producers extended production cuts.
On June 6, the OPEC + ministers agreed to maintain the current agreement to reduce production. In May-June, the parties to the agreement adhered to a total quota of 9.7 million bps, and, by initial agreement, this quota was supposed to be reduced by 2 million bps from the beginning of July. Now in July, the quota will be maintained, although in a slightly smaller amount – 9.6 million bps.