- Political unrest in Ecuador and Libya is impacting oil production
- Libya's state oil company suspended shipments from two important eastern ports, and the nation's output has dropped by half to 600 MBbl/d since April
- Ecuador's oil output has fallen more than 50% below the typical 520 MBbl/d and is likely to stop entirely within 48 hours, according to the Energy Ministry
- The drop in Libya and Ecuador’s oil production could tighten supply further
- China may provide refiners with subsidies in an effort to shield consumers from cost increases if crude prices rise beyond $130/Bbl
- The move aims to ensure the secure and steady supply of oil products while also reducing economic costs and easing consumer burdens according to the Ministry of Finance
- Refiners and fuel traders who make or import gasoline and diesel will be given subsidies for as long as two months if crude prices breach the targeted ceiling
- U.S. oil inventory data for the past two weeks will be released later on Wednesday
- Before the EIA released its statistics, API data revealed that U.S. oil stockpiles at the key storage hub in Cushing, OK, continued to decline, signaling tightness in supplies
- For the week ending June 24, the API estimated a draw of 3.8 MMBbl and a 5.6 MMBbl build in oil inventories for the week ending June 17th