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.