Another healthy day for the oil price
|Another healthy day for the oil price although to be fair on the ground life has not yet fully got back to normal. Accordingly the inventory stats are going to be at best an indication of what is happening in both crude and products. Last night the EIA numbers showed a 5.9m build which was higher than the 4.4m estimates but refinery capacity is now 77.7% having fallen again. Gasoline however drew by 8.4m barrels which is the largest weekly fall since records began in 1990 and distillates drew 3.2m barrels.
It was the IEA that sealed a good day, coming out with its monthly the day after the other two with a headline of crude supplies falling on ‘robust’ demand and the production deal holding. Indeed since then the Saudis have cut back more and so for choice it may have got a bit better. This is only a temporary rally but WTI at nearly 50 bucks and Brent at over 55 is worth cheering about and it may not bring on too much more US production….yet.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.