Crude inventories in the US rose by 1.44 million barrels in the week ended June 19th 2020, following an 1.215 million increase in the previous week and compared with analysts’ estimates of a 0.3 million advance, according to the EIA Petroleum Status Report.
Gasoline inventories fell by about 1,67 barrels, following a 1.667 million decline in the prior period and below/above analysts’ expectations of about 1,72 million barrels decline.
Earlier, OPEC + announced that there is no recommendation to extend record cuts to August (9.7 million barrels per day). However, this was expected by the market. On the other hand, supply returns in the US. In the coming weeks, increased drilling activity can restore production to as high as 500,000 barrels per day. However, it is worth paying attention to improving data on demand. Nevertheless, there is still a significant oversupply on the market, which will probably halt oil price increases.
WTI Crude Oil (OIL.WTI) fell after the release of today's EIA report and is heading towards $38.47 support level. Source: xStation5
