An increase in oil supply following the regulation of production in the Persian Gulf is forcing Asian refineries to offer some cargoes to buyers in the United States, Bloomberg reported, citing industry sources.
According to these sources, after the resumption of cargo through the Strait of Hormuz, Asian refineries have met demand at least until August, while demand from China remains subdued. As a result, oil supplies from the UAE began to be offered to buyers in the western part of the United States and Hawaii. The agency notes that these supplies have been made possible by falling oil prices in the Middle East and dwindling energy reserves in the United States.
Bloomberg notes that the restoration of production in the Persian Gulf after the signing of a memorandum of understanding between the United States and Iran has led to a rapid increase in oil supplies. Meanwhile, American stockpiles, including at the Cushing oil storage facility and on the West Coast, have dwindled to a minimum.
