Global Oil Stocks Rebuilding as Gulf Exports Recover, Demand Outlook Weakens, TPH Says

Global crude inventories rose in June as Gulf producers accelerated exports, but underlying stock levels remain significantly depleted, with weaker demand projections continuing to weigh on market sentiment, TPH Energy strategists said in a note on Friday. OECD commercial inventories fell by about 1 million barrels in May to about 2.76 billion barrels, leaving stockpiles about 59 million barrels below their five-year average, TPH analysts said, citing the International Energy Agency's July Oil Market Report. Jeff LeBlanc, analyst at TPH Energy, said that the drawdown followed a downward revision to April inventories of about 36 million barrels, with the market estimated to have been undersupplied by about 5.5 million barrels per day in May. Beyond OECD stocks, TPH said that global observable oil inventories declined by about 73 million barrels in May, including a reduction of about 72 million barrels in government-held inventories. However, preliminary figures indicate a reversal in June, with global inventories rising by about 21 million barrels as Gulf producers ramped up exports and oil held at sea increased. The bank said that oil-on-water inventories climbed by about.