US Crude Stock Build Continues

Six weeks ago, we observed that a surprise US crude inventory build was consistent with seasonal patterns, risk aversion ahead of Iran sanctions, trapped Cushing storage and Motiva stock building. We suggested that these rising inventories, driven by surging US shale oil production, poised a threat to crude tanker demand on any normalisation of inventory levels in a weakening demand environment. Since then, US crude stocks have continued to rise against historical seasonal patterns — despite strong crude runs — thus raising the stakes in the prospects for the tanker market. Download here