- Oil inventories rose by nearly by 3.4 million barrels last week and market expected an increase of 3 million barrels. Previously it was nearly 16 million barrels increase.
- Gasoline inventories: -1,7 mb (forecast: -2,0 mb; previously: -1,0 mb)
- Distillate inventories: 0,4 mb (forecast -2,4 mb; previously: 0,25 mb)
Oil inventories increase in line with seasonality. On the other hand, we can notice a significant increase in oil processing in the US, suggesting preparations for a recovery in demand. Source: Bloomberg Finance LP, XTB
The latest energy data and geopolitical developments are shaping a complex narrative for the oil markets:
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Crude Oil Inventories: There has been another significant build in crude oil inventories, aligning with market expectations.
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Gasoline Stocks: Conversely, gasoline inventories are trending lower, signaling robust underlying demand for refined fuels.
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Geopolitical Risk Premium: Despite the domestic inventory data, the crude market remains primarily tethered to developments in the Middle East.
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Price Action: WTI crude is currently retracing toward the $74 per barrel mark as market confidence grows that the conflict could resolve sooner than the several-week timeframe previously feared.
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