For the 6th time in the past 7 releases the weekly crude oil inventories have come in higher than the consensus forecast, however the adverse reaction in the oil markets has been fairly small. The breakdown of the data was as follows:
-
Weekly crude oil inventories: +5.7M vs +0.5M exp. API: +1.7M
-
Gasoline: -3.0M vs -2.3m exp. API: -4.7M
-
Distillates: -1.0M vs -2.4M exp. API: -1.6M
-
Production: 12.6M bpd - unchanged.
The headline beat both the expected as well as the API, although the gasoline and distillates components were more mixed. On the whole it does seem to be a negative release for crude prices but after an initial dip both Oil and Oil.WTI have recovered somewhat.
Start investing today or test a free demo
Open real account TRY DEMO Download mobile app Download mobile appOil.WTI fell sharply as the data dropped and declined by as much as 60 ticks. However, there has been a lack of follow through so far and the market is looking to regain its footing. Source: xStation
The bigger picture for the market is also far from clear at the moment with price in between the 8 and 21 EMAs that are showing no clear trend. Near term support could be found around 54.60 while recent highs at 56.95 need to be broken for a sustained move higher. Source: xStation
The content of this report has been created by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, (KRS number 0000217580) and supervised by Polish Supervision Authority ( No. DDM-M-4021-57-1/2005). This material is a marketing communication within the meaning of Art. 24 (3) of Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (MiFID II). Marketing communication is not an investment recommendation or information recommending or suggesting an investment strategy within the meaning of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC and Commission Delegated Regulation (EU) 2016/958 of 9 March 2016 supplementing Regulation (EU) No 596/2014 of the European Parliament and of the Council with regard to regulatory technical standards for the technical arrangements for objective presentation of investment recommendations or other information recommending or suggesting an investment strategy and for disclosure of particular interests or indications of conflicts of interest or any other advice, including in the area of investment advisory, within the meaning of the Trading in Financial Instruments Act of 29 July 2005 (i.e. Journal of Laws 2019, item 875, as amended). The marketing communication is prepared with the highest diligence, objectivity, presents the facts known to the author on the date of preparation and is devoid of any evaluation elements. The marketing communication is prepared without considering the client’s needs, his individual financial situation and does not present any investment strategy in any way. The marketing communication does not constitute an offer of sale, offering, subscription, invitation to purchase, advertisement or promotion of any financial instruments. XTB S.A. is not liable for any client’s actions or omissions, in particular for the acquisition or disposal of financial instruments, undertaken on the basis of the information contained in this marketing communication. In the event that the marketing communication contains any information about any results regarding the financial instruments indicated therein, these do not constitute any guarantee or forecast regarding the future results.