US Distillate Demand At A 28-Year-Low; Distillate Supplies At A 37-Year High -- June 4, 2020

EIA's weekly petroleum report -- observations continued.

The reader who first noted the EIA's discrepancy in US crude oil inventory data also noted, posted at this link:

Also of note: distillate demand was at a 28 year low, and distillate supplies were at a 37 year high (1983), and what's most notable about that is that they were actually higher in 1983... 

We also added over 4 million barrels to the SPR, & that appears to be the most ever added in one week.

See this post regarding EIA production estimate released yesterday, June 3, 2020.

I find that absolutely amazing -- going back to 1983 -- from the American History:

• By 1983, the economy had rebounded and the United States entered into one of the longest periods of sustained economic growth since World War II. 

**********************************

Global Natural Gas Stocks

From Bloomberg via Rigzone:

The specter of negative prices is hanging over energy markets more than a month after oil’s unforgettable crash below zero.

While crude has staged a rapid recovery after a deal by the biggest producers to curb a surplus, the $600 billion global gas market remains extraordinarily oversupplied. Traders and analysts say the worst may be yet to come as demand falls and storage nears capacity, creating the ideal conditions for negative prices in some parts of the world.

It shows just how far the global energy industry is from recovering from a pandemic-fueled slide in demand and signals more pain for producers from the shale fields of Texas to Australia’s Curtis Island. Unlike the oil market, there’s been no sign of a coordinated response to address the glut, meaning the fallout could be deeper and longer.

“We are in uncharted territory with low demand levels and high storage stocks,” said Guy Smith, head of gas trading at Swedish utility Vattenfall AB. “In the shorter term there is real risk that conditions may be set to allow negative prices in Europe, but only in the very short term.”