Volatility casts a long shadow over the global oil market | Arab News

Oil prices were also buoyed up by the US Energy Information Administration weekly data that showed another US crude stock drawdown last week.

However, pressure on prices putting cap is now wobbly with inflation squeezing consumers and the coronavirus disease hitting demand and supply chains in China.

Another crucial influencer is the Biden administration’s decision to release an unprecedented 1 million bpd from the US Strategic Petroleum Reserve for the next six months.

In the meantime, refinery margins reversed trends and soared in all main trading hubs.

The pipeline provides the cheapest and easiest route to oil markets for three giant fields in Kazakhstan: Tengiz and Kashagan, which produce around 650,000 bpd and 400,000 bpd of crude, respectively, and Karachaganak, which contributes about 250,000 bpd of gas condensate.

This, in turn, might lead to a bearish crude price outlook in the coming weeks stemmed by reduced demand for crude.

The surge in US crude oil exports to 3.8 million bpd could set the stage for higher-than-expected flows in April.

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