Oil Inventories Hit Two-Decade Lows as Urals Crude Flips to Brent Discount
BNO•Oil inventories in major consuming nations are near 2003 lows after Middle East output losses topped 11 million barrels per day and Kuwait stocks fell. Russian Urals crude is now discounted versus Brent in Asia as refinery demand softens, intensifying supply pressures.
1. Inventory Lows and Middle East Output Losses
Oil stockpiles in major consuming nations have plunged toward levels not seen since 2003 after conflicts in the Middle East removed over 11 million barrels per day from global supply, draining strategic reserves.
2. Kuwait Stock Declines
Kuwait’s crude inventories dropped sharply when two very large crude carriers departed the Gulf with their AIS transponders switched off, removing significant volumes from regional storage.
3. Russian Urals Discount
In Asian ports, Russian Urals crude is trading at a discount to Brent as refinery demand softens, reflecting shifting regional buying patterns and easing consumption pressures.
