Kayrros: Record Draw In Global Crude Oil Inventories Was Reflected In Brent Time Spreads

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Kayrros: Record Draw In Global Crude Oil Inventories Was Reflected In Brent Time Spreads
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  • Kayrros reported a draw in global inventories outside the US while EIA reported a draw in US commercial crude stocks.
    • The drop continues the trend of falling global crude inventories that Kayrros detected at the beginning of June, preceded by builds in April and May. Last week’s move erased a significant part of the Q2 2018 build in global crude inventories.
  • Brent time spreads displayed large movements last week, with the 6m-1m time spread narrowing by over $1/b week-on-week, before correcting slightly.
    • The Brent term structure was now relatively flat for the first five months as of the writing of this report, highlighting the significant shift in structure that took place last week.
  • The lower than expected level of disruptions weighed on crude prices last week. With disrupt