April Shows Record Crude Inventory Increase
No surprise, April was a pretty rough month for the petroleum industry. Demand plummeted, prices turned negative, and inventories swelled. As it turns out, inventories actually rose faster than they ever have, adding 47 million barrels (+10%) in April.
Russian Diesel Spill Caused by Arctic Weather
Even in the middle of summer, it’s ice-o’clock somewhere. A Russian diesel tank leaked thousands of gallons of fuel due to icy weather. The leak has implications for US infrastructure in places like Alaska; one study estimates that arctic cold could cost Alaksa’s public infrastructure $5.5 billion through the end of the century. It seems the cold does bother them anyways.
US pipeline challenges “pretty disturbing” for oil producers in Canada
US oil supporters aren’t the only ones phased by recent court rulings to slow or stop major pipelines such as Keystone XL and the Dakota Access Pipeline. Oil producers in Alberta, a land-locked area that exports nearly all its products via pipeline and rail to the US, are also sounding the alarm. The area saw crude prices fall to the teens during the last price collapse (pre-COVID), and now they face another threat.
Potential tropical storm soaking parts of the South
A weather system traveling over the southeast is forecast to travel up the Eastern US coastline, where it has a 70% chance of cyclone formation over the coming week. Currently named Invest 98L, the storm would be named Fay if it develops further.