Summary:
- Crude oil stockpiles dropped 12.79 million barrels
- Distillates and gasoline inventories also experience major decline
- WTI prints new daily high in a knee-jerk move
The US Department of Energy released its weekly stockpiles report at 3:30 pm BST. Market expected a drop of 2.84 mb but following yesterday’s API reading (-7.55 mb) bar of expectations was raised. Nevertheless, the official government report did not disappoint. The 12.79 mb decline reported for the past week was the biggest one-week drop since Q3 2016. Distillate inventories decline 2.441 mb while the market expected an increase of 0.17 mb. Gasoline stockpiles were expected to drop by 330k but the report showed a drop of 996k. It should not come as a surprise that oil surged in the aftermath of the release. WTI (OIL.WTI) is trading slightly below $60 dollar handle after the release while Brent (OIL) moved above the $65.50 handle.
Start investing today or test a free demo
Create account Try a demo Download mobile app Download mobile app
Oil inventories saw a steep decline last week. Nevertheless, stockpiles are still significantly above the 5-year average. Source: Bloomberg, XTB Research
OIL.WTI surged in the aftermath of the DOE release and printed new daily high at $59.92. The commodity is trading over 3% higher on the day. Source: xStation5
This content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 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. XTB 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.
