Summary:
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EIA inventories: +2.2M vs -1.0M exp
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Build smaller than API; Production also falls
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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.
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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:
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EIA inventories: +2.2M vs -1.0M exp; +6.8M prior
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Cushing: +2.1M
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Gasoline: +0.8M vs +1.0M exp
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Distillates: -1.0M vs +1.1M exp
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Refinery utilisation: +1.45% vs +0.55% exp
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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
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