Summary:
-
EIA inventories: +2.2M vs -1.0M exp
-
Build smaller than API; Production also falls
-
Oil remains lower on the day
The weekly Oil inventory figures have shown a bigger than expected rise in US stockpiles, but the market has failed to fall further since the release possibly due to the increase being smaller than last night’s API equivalent and also the fact that US production decreased.
The initial reaction in Oil has been pretty mixed with a sharp sell-off in the few minutes that followed seeing buyers step in around daily lows of 60.60. The push higher failed at 61.41 however and these 2 levels are now important to keep an eye on for a break of the recent range. Source: xStation
The figures from the report are as follows:
-
EIA inventories: +2.2M vs -1.0M exp; +6.8M prior
-
Cushing: +2.1M
-
Gasoline: +0.8M vs +1.0M exp
-
Distillates: -1.0M vs +1.1M exp
-
Refinery utilisation: +1.45% vs +0.55% exp
-
US production: 12.3M bpd vs 12.4M bpd prior
On the whole these figures aren’t as negative as the headline suggests and when you consider that last night’s API showed a build of 4.9M you could argue that even the headline isn’t that supportive. The fall in US production is also worth pointing out as a slight positive for price.
Oil was already down by over 2% on the day ahead of the release, with the longer-term picture for crude remaining on of a downtrend with price firmly below the Ichimoku cloud on D1. Source: xStation
This content has been created by X-Trade Brokers Dom Maklerski S.A. This service is provided by X-Trade Brokers Dom Maklerski S.A. (X-Trade Brokers Brokerage House joint-stock company), with its registered office in Warsaw, at Ogrodowa 58, 00-876 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. X-Trade Brokers Dom Maklerski S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.
