Summary:
-
Crude oil inventories: -8.6M vs +3.0M exp
-
Drawdown comes after API drop (-4.2M) last night
-
Sparks rally in Oil.WTI back above $57
The weekly crude oil inventories have shown the largest drop in 7 months, and added more fuel to the recovery rally following Monday’s large declines. Compared to an expected build of 2.8M and a prior reading of +3.7M today’s number is clearly a positive beat for the price of crude. Last night’s API saw a short, sharp move higher after an unexpected drop of 4.2M, but today’s more widely viewed figure has outdone that and provided a further boost to the market.
Start investing today or test a free demo
Open account Try demo Download mobile app Download mobile app
Oil.WTI jumped on last night’s API drawdown and extended the rally after this afternoon’s EIA inventory release. Price is now back above the $57 handle and up by almost 200 ticks, or $2, in less than 24 hours. Source: xStation
In addition to the headline reading, the following subcomponent inventory numbers of the report were also released:
-
Gasoline: -1.9M vs -1.3M exp
-
Distillates: -0.3M vs -2.0M exp
-
Production: 12.1M vs 12.0M prior
The gasoline and distillates numbers are fairly mixed here really with the US production once more increasing to a new record high of 12.1M. This increase in production is no doubt negative for the price of Oil, but the market appears to be looking through this for now and focusing more on the large drawdown in the headline inventory number.
The longer term head and shoulders remains in play for Oil.WTI with 55.00 now seen as potentially key support and highs around 57.80 resistance. Source: xStation
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.
