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Oil in Global Economy Series: Great convergence in US

This chart shows what we at FxWirePro are calling the great convergence and we expect to be one of the most crucial factors going ahead. Three data are plotted here,

  • The net imports of crude oil and petroleum products have declined from 15.1 million barrels per day in 2006 to just 5 million barrels per day as of last week. We always believed that this has always been the major factor for a decline in oil price since the summer of 2014. For the same period, US crude oil and other petroleum product exports rose from just 1 million barrel per day to 5.3 million barrels per day, as of last week.
  • In recent months, the imports of petroleum products and crude oil have gone up by as much as 1 million barrels per day compared to levels seen in August last year but the net imports have continued to decline.

This trend is unlikely to get changed any time soon and expect this to be the key determinant of crude oil price going forward.

WTI is currently trading at $51.6 per barrel and Brent at $3 per barrel premium.

  • Market Data
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