In addition to strong demand and falling stocks, the nation is seeking the help of other nations and companies to build large storage facilities.Depending on the timeframe of these builds, the impact on oil could be meaningful, but it’s bound to be important for the glut eventually regardless.On July 5th of this year, I published an article here on Seeking Alpha about India and the impact that the nation has had on growing demand and in helping to solve the global oil glut. Now, however, fresh data has come out, courtesy of the EIA (Energy Information Administration) that suggests the picture may be even better moving forward than it was in the past so, in this piece, I decided that it would be a wise idea to dig into this data and determine what it likely means for investors in companies like Memorial Production Partners (NASDAQ:MEMP), Approach Resources (NASDAQ:AREX), and Legacy Reserves (NASDAQ:LGCY), as well as for the United States Oil ETF (NYSEARCA:USO) and other oil-related ETFs.
My goal here is not to do a complete rehash of my prior research but, instead, to build upon it. Having said that, I do believe revisiting the core thesis is imperative. In my article, I showed that, through March (no data that is more recent is available), crude stocks in the nation have dropped, falling from 39.94 million barrels in January to 34.69 million barrels. In addition to suffering from a drop in production this year that threatens to take aggregate production through 2016 down below the five-year average ending in 2015, I showed, as you can see in the image below, that demand for oil has soared.