Analysts are saying demand for crude oil and petroleum products is moving closer to healthier levels in the United States, but the numbers remain distorted by the ransomware attack on the Colonial fuels pipeline on the East Coast.
The U.S. Energy Information Administration reports weekly on inventory levels of commercial crude oil and refined petroleum products such as gasoline. That information is used as a rough indicator of the health of the economy, as both reflect market demand.
This week’s figures showed commercial crude oil inventories had declined by 1.7 million barrels week-on-week for the period ending May 21. That puts U.S. crude oil inventories at about 2 percent below the five-year range, revealing that demand is again on the rise.
The figures were still distorted by disruptions including May 7 Colonial ransomware attack. East Coast markets depend on supplies from the pipeline to meet about half of the regional demand for refined petroleum products, and the outage ran down those supplies, he said.
Maybe we will continue on a positive upswing.