Oil demand is picking up but will be muted this summer: Analyst

The Schork Group principal Stephen Schork argues oil demand is picking up but that it is partially due to barrels moving into the Strategic Petroleum Reserve.

Occidental Petroleum Corp is removing non-essential workers from some central Gulf of Mexico facilities ahead of Tropical Storm Cristobal, the company said on Wednesday.

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The company’s Gulf of Mexico operations are continuing uninterrupted, the company said.

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Other Gulf of Mexico operators, including Chevron Corp, Exxon Mobil Corp, BHP Petroleum and Hess Corp, said on Wednesday they are monitoring the storm but have not evacuated workers so far.

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Cristobal made landfall on the coast of Mexico on Wednesday and is moving inland over eastern Mexico, the U.S. National Hurricane Center, said in its latest advisory. The storm is expected to re-emerge over the southern Gulf of Mexico on Friday and move north, threatening the U.S. Gulf Coast.

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The U.S. Energy Information Administration expects the Gulf of Mexico to account for 15% of total U.S. crude oil production in 2020, compared with 23% of total U.S. crude oil production in 2011, as onshore production growth continues to outpace offshore production growth.

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