LONDON: Brent crude oil steadied above $55 a barrel on Wednesday, not far above the week’s lows, as more evidence emerged of global oversupply that has filled fuel storage tanks around the world.
U.S. crude oil inventories rose by 4.8 million barrels in the week to March 20, data from the American Petroleum Institute (API) showed on Tuesday, pushing total U.S. crude oil stockpiles to record highs above 450 million barrels. [API/S]
Chinese crude oil stocks
are also at historic highs and the country’s commercial and strategic storage is almost full, a Sinopec trading executive told an industry forum on Wednesday.
With storage approaching its limit, China’s oil imports will likely stay flat or rise only slightly this year, the official said.
Brent crude oil LCOc1 was up 30 cents at $55.41 a barrel by 0910 GMT. U.S. light crude oil CLc1 was unchanged at $47.51 per barrel.
Analysts from the International Energy Agency and the Organization of the Petroleum Exporting Countries estimate that world oil demand is now running at more than 1.5 million barrels per day below supply on average and say the market is unlikely to balance until the second half of this year.
That means several more months of rising inventory levels and the risk of more pressure on oil prices.
