27 Aug 2020

JBC in the Media - CNBC

INTERVIEW: Johannes Benigni on the Impact of Hurricanes Laura and Marco on the Oil Market

  • About 84% of crude oil production off the Gulf of Mexico was taken offline, pushing output to 1.5 million b/d on average over August

  • At the same time, refining capacity of close to 3 million b/d was not operating at the height of the storms’ impact

  • Since crude is not being refined or exported in its usual quantities, this may lead to a little bit of a stockbuild, whilst product inventory is likely to draw on lower refinery operations

  • US crude oil inventories are still 20% higher compared to last year; gasoline stocks are slightly higher y-o-y (~3%), but we are well on our way to seeing inventory return within the top end of the 5-year range in the next 2 weeks

  • Stocks of distillate are currently at record highs, however, about 32% higher compared to last year