The latest high-frequency tracking data for global oil inventories reveals a continued drawdown in onshore stocks, with supply disruptions in Russia and accelerated depletion in the United States.
Global Onshore Oil Inventories: As of June 5th, global onshore petroleum inventories were recorded at 3.541 billion barrels. This represents a decrease of 0.39% compared to the 3.554 billion barrels recorded on May 29th, indicating a decline from recent highs.
Global Oil in Transit (Seaborne): As of the same date, global seaborne oil in transit stood at 1.210 billion barrels. This marks a 0.6% increase from the 1.202 billion barrels recorded a week earlier.
Global Floating Storage: The volume of oil held in floating storage globally was recorded at 155 million barrels as of June 5th. This is a significant 12% rise from the 137 million barrels noted on May 29th.
Weekly Overview
Total global oil inventories, combining both seaborne and onshore stocks, continued to decrease this week, reaching what is essentially a near three-year low. On the demand side, commercial inventories in China are trending downwards. This is partly due to disruptions in imports of Iranian crude, evidenced by an increase in Iranian oil held in floating storage, leading to a gradual drawdown of accumulated stockpiles. In India, refinery inventories remain elevated. With the US extending its sanctions waiver on Russian oil for a third time until June 16th, India's imports from Russia are expected to increase subsequently. Significant inventory drawdowns have already become apparent in Japan and South Korea.
On the supply side, US oil inventories have also begun to decline at an accelerating pace. Robust exports of WTI crude are driving this faster drawdown, helping to compensate for supply gaps from the Middle East to markets in Asia and Europe. Russian onshore oil inventories have fallen sharply to multi-year lows. Persistent attacks on refineries are causing a sustained contraction in supply. Meanwhile, floating storage of Middle Eastern oil remains high. Although Iran has announced rules for conditional passage of vessels through the Strait of Hormuz, the waterway remains effectively blocked in practice.
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