Is the crude oil market still rebalancing, or is U.S. shale already starting to have an effect on supply? Inventory levels in the Caribbean can provide some insight. Using Ursa’s Caribbean inventory level data, we discovered a drastic draw in the U.S. Virgin Islands in the last 8 months:
Between the end of July 2017 and March 2018, inventories in St. Croix have fallen significantly, dropping from 65% capacity utilization to 28% capacity utilization, a 57% draw just in those several months.
Ursa measures St. Croix and 9 other key Caribbean terminals every week in its Caribbean Oil Storage report. Monitor these terminals to keep an eye on key market indicators.