Oil prices recovered ground, but an API inventory build undermined confidence [Video]

Joe Neighbour Signal Centre

Oil prices attempted to recover ground on Tuesday and there was net support from stronger equities.

Dollar strength was a headwind and there was further underlying concern surrounding global coronavirus developments and the potential impact on demand. Nevertheless, there was a stronger recovery late in the European session.

WTI found support above $65.0 p/b and rallied to near the $67.0 p/b area.

API data recorded an inventory build of 0.8mn barrels with a strong build in gasoline stocks which undermined confidence.

WTI traded around $66.90 p/b on Wednesday with Brent just above $69.00 p/b.

3.30 pm – US EIA crude oil inventories (w/e 16 July): stockpiles rose by 1 million barrels in the previous week. Markets to watch: Brent, WTI.

Author

Joe Neighbour

Signal Centre

Joe started his career in financial services with HSBC at 18 years old before moving into the broking arena at several small to medium-size firms.

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