- Weekly EIA data showed larger-than-expected draw in US crude inventories.
- API on Tuesday also reported drop in US crude oil stocks.
- Easing concerns over prolonged US-China trade war help oil prices stay in green.
Although the weekly data published both by the American Petroleum Institue (API) and the Energy Information Administration (EIA) this week showed larger-than-expected draws in the US crude oil inventories, the barrel of West Texas Intermediate (WTI) struggled rise sharply.
On Tuesday, the API announced that crude oil stocks in the US fell by 3.5 million barrels compared to analysts' estimate of 1.9 million barrels. Today, the EIA reported that crude oil inventories declined by 2.73 million barrels in the week ending August 26 versus the market expectation for a draw of 1.9 million barrels.
With the initial market reaction to the EIA data, the WTI dropped to a session low of $56.15 but didn't have a difficult time recovering some of its losses. As of writing, the WTI was trading at $56.50, still adding 0.85% on the day.
The upbeat market sentiment following the latest headlines surrounding the US-China trade conflict seems to be helping to ease concerns over a dismal energy demand outlook and allow crude oil prices to trade in the positive territory. Moreover, German Finance Minister Scholz today said that they were currently practising with expansive budget policy to revive hopes of the government taking decisive measure to counter a possible recession and provided an additional boost.
Technical levels to watch for
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD hovers around 0.6500 amid light trading, ahead of US GDP
AUD/USD is trading close to 0.6500 in Asian trading on Thursday, lacking a clear directional impetus amid an Anzac Day holiday in Australia. Meanwhile, traders stay cautious due ti risk-aversion and ahead of the key US Q1 GDP release.
USD/JPY finds its highest bids since 1990, near 155.50
USD/JPY keeps breaking into its highest chart territory since June of 1990 early Thursday, testing 155.50 for the first time in 34 years as the Japanese Yen remains vulnerable, despite looming Japanese intervention risks. Focus shifts to Thursday's US GDP report and the BoJ decision on Friday.
Gold price treads water near $2,320, awaits US GDP data
Gold price recovers losses but keeps its range near $2,320 early Thursday. Renewed weakness in the US Dollar and the US Treasury yields allow Gold buyers to breathe a sigh of relief. Gold price stays vulnerable amid Middle East de-escalation, awaiting US Q1 GDP data.
Injective price weakness persists despite over 5.9 million INJ tokens burned
Injective price is trading with a bearish bias, stuck in the lower section of the market range. The bearish outlook abounds despite the network's deflationary efforts to pump the price. Coupled with broader market gloom, INJ token’s doomed days may not be over yet.
Meta Platforms Earnings: META sinks 10% on lower Q2 revenue guidance Premium
This must be "opposites" week. While Doppelganger Tesla rode horrible misses on Tuesday to a double-digit rally, Meta Platforms produced impressive beats above Wall Street consensus after the close on Wednesday, only to watch the share price collapse by nearly 10%.