Crude Production & Stocks
Although U.S. crude oil production dropped dramatically from highs early this year, crude stocks continue at levels above seasonal averages.
The first chart shows production trends in each of the last 2 years. Production exceeded 13 million barrels per day in early 2020 but dropped to under 10.4 million for the recent 4-week average.
The second chart highlights crude stocks (storage) trends so far in 2020 along with the 5-year range. Note that stocks have fallen in recent months, as is typical this time of year, but are still above the seasonal range.
Markets have adjusted to the weak economy but awaiting for a resumption of transportation demand. In the meantime, there appears to be plenty of crude and the crude futures curve confirms a loose supply-demand balance.