US Oil stocks fell last week, strong demand for Oil products – Commerzbank

FXStreet Insights Team FXStreet

According to the US Department of Energy, US crude Oil inventories fell by 2.4 million barrels last week compared to the previous week, Commerzbank's commodity analyst Carsten Fritsch notes.

Gasoline demand reaches a two-month high

"This meant that the decline in inventories was larger than expected and also exceeded the reduction reported by the API. US gasoline stocks fell by 1.2 million barrels, while US distillate stocks fell by 1.8 million barrels. This was also more than expected and, in the case of distillates, unexpected. Strong demand contributed to the drawdown in Oil product inventories."

"Gasoline demand reached a two-month high shortly before the end of the summer driving season. Demand for distillates even rose to a six-month high and the highest August level in four years."

"The deviation of distillate stocks from the five-year average subsequently increased to nearly 15%. The easing of the supply situation for middle distillates observed in recent weeks has thus come to a halt for the time being."

Author

FXStreet Insights Team

FXStreet

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

EUR/USD looks to stabilize near 1.1600 as focus shifts to US data

EUR/USD is looking to stabilize near 1.1600 in the European session on Wednesday as traders breathe a sigh of relief before the top-tier US ADP jobs and ISM Services PMI data. A pause in the US Dollar uptrend helps the pair's recovery, but surging energy prices due to the Iran war will likely remain a drag.

GBP/USD stays weak near 1.3350 as USD preserves gains

GBP/USD stays in the red below 1.3350 in the European session on Wednesday. Escalating conflict in the Middle East keeps the "flight to safety" theme intact, supporting the US Dollar against the Pound Sterling. Traders will take more cues from the US ADP Employment and ISM Services Purchasing Managers Index reports, which are due later on Wednesday.

Gold retains positive bias amid sustained safe-haven flows and modest USD pullback

Gold maintains its offered tone through the first half of the European session, though it lacks follow-through and remains below the $5,200 mark. Investors remain concerned about a prolonged conflict in the Middle East and its impact on the global economy amid an already uncertain environment.

ADP Employment Report set to signal stronger February jobs growth, little effect on Fed outlook

The Automatic Data Processing (ADP) Research Institute will release its monthly report on private-sector job creation for February on Wednesday. The so-called ADP Employment Change report is expected to show that the United States private sector added 50K new positions in the month, following the 22K gained in January.

Asian stocks fall as South Korea’s KOSPI slumps over 10%

Asian equities drop on Middle East tensions; the MSCI Asia Pacific Index falls up to 4%. South Korea’s KOSPI fell 10.71% near 5,170, with the Korean Won weakened past 1,500 per dollar.

Solana Price Forecast: SOL consolidation near resistance as ETF inflows offer mild support

Solana price is facing slight rejection as it approaches the upper boundary of the consolidation range at around $88 on Wednesday. Institutional demand is strengthening as spot Exchange Traded Funds recorded two consecutive inflows so far this week.