While US crude inventories dropped last week, stocks of finished products increased.
According to analysts, on average, crude oil stocks are estimated to have increased by 5.7 million barrels in the week of July 3 and decreased by 2.3 million barrels in the week of July 10.
Again, it is thought that gasoline stocks decreased by 900,000 barrels last week, while distilled product stocks containing diesel and heating oil increased by 1.5 million barrels. Presumably, inventories will rise to the highest level since 1983.
Refinery usage rate is expected to increase by 0.4 points last week from 77.5% of the total capacity for the week ending July 3rd.
The oil market is thought to be approaching equilibrium before the key OPEC meeting.
Before the group and its ally Russia came together to decide whether to alleviate supply cuts from August, demand gradually increases and the oil market is approaching equilibrium.
After the 9.7 million barrels bpd supply cut that will last until the end of July, the cuts will decrease by 7.7 million bpd by December. A panel called the Joint Ministerial Monitoring Committee met on Wednesday to suggest the next cut.
The gradual reopening of economies and societies around the world provided a much-needed resurgence for demand, reversing a rapidly rising trend in oil stocks.
On the contrary, unless there is a severe negative development, supply and demand trends may hopefully help to approach a balanced market.
Although OPEC and Russia are thought to have an approach to alleviate cuts in August, it is not time to expect major changes in the OPEC + deal.