EIA reduces oil surplus estimates – ING
|Despite the ongoing uncertainty in global markets, oil prices managed to settle higher yesterday, supported by the weaker USD. Even so, ICE Brent continues to trade below US$70/bbl and prices will likely remain sensitive to external developments. The oil market seems to be largely ignoring Ukraine agreeing to a US-brokered ceasefire. There is still uncertainty over where Russia stands on the proposed agreement, ING's commodity experts Ewa Manthey and Warren Patterson note.
Uncertainty over where Russia stands on the proposed agreement
"Numbers overnight from the American Petroleum Institute (API) were fairly bearish. US crude oil inventories increased by 4.2m barrels over the last week, well above the roughly 2m barrel build the market expected. Draws in Cushing crude oil inventories and gasoline stocks offset some of the bearishness, falling 1.2m barrels and 4.6m barrels, respectively. Meanwhile, distillate stocks grew by 400k barrels."
"U.S. Energy Information Administration’s (EIA) latest Short-Term Energy Outlook showed that surplus expectations for the market over 2025 and 2026 were reduced thanks to sanctions. The EIA now expects the global market to be in a 100k b/d surplus in 2025, compared to a previous forecast for a surplus of 500k b/d. In 2026, the EIA cut its surplus forecast from 1m b/d to 500k b/d. US crude oil production estimates were increased marginally for both 2025 and 2026, despite the more recent weakness seen in West Texas Intermediate (WTI) crude."
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.