- Oil continues to push higher, now above $78
- The API estimates that US crude inventories increased by 8.52 MMBbls last week, ahead of the official EIA data release today
- Iranian exports to China fall to 11-month low (BBG)
- According to data from Kpler, China received 986 MBbl/d from Iran in January, the lowest volume since February 2023
- China’s independent refiners are the primary purchasers of Iranian oil, but higher prices have forced them to turn towards Russian ESPO crude
- Iranian oil in floating storage off the coast of Singapore and Malaysia rose to 15 MMBbls as of Tuesday
- Refill of oil inventories could boost demand (Reuters)
- A move to replenish depleted oil inventories in China, Europe, and the US could boost demand for oil in the next few months
- According to a European refiner, "Chinese buying is high as it restocks in the first half," and "U.S. and European buying is also stronger this month as the situation for barrels from East of Suez could get much worse at any time."
- There has been a large counter-seasonal decline in global crude and fuel stocks of nearly 29 MMBbls compared to a typical build of 20 MMBbls
