We have had some more bullish oil news from the weekly US inventories report. It remains to be seen whether the news is enough to lift the oil price.
Following the API data overnight we had even more bullish-looking official inventories report from the US Department of Energy.
The fact that crude stocks fell for the 5th straight week certainly points to strong demand, pushing stockpiles to their lowest levels since January.
As well as the big headline draw, stocks of crude products fell sharply too. The 2 million barrel draw in gasoline inventories was much higher than the API report, and suggests the driving season is well and truly at full steam, when demand for gasoline tends to rise.
In case you missed it, the DoE reported the following numbers:
• Crude -5.84mm
• Cushing -464k
• Gasoline -2.08mm
• Distillates -4.07mm
Whether or not oil can now stage a meaningful rebound remains to be seen. It has certainly lost its entire risk premium associated with the Iran-Israel conflict. Perhaps it is up to the OPEC+ now to decide with the alliance due to hold discussions on July 6 to consider a further supply boost in August. Any hints of a slower supply boost could provide support to prices.
By Fawad Razaqzada, market analyst with FOREX.com
Following the API data overnight we had even more bullish-looking official inventories report from the US Department of Energy.
The fact that crude stocks fell for the 5th straight week certainly points to strong demand, pushing stockpiles to their lowest levels since January.
As well as the big headline draw, stocks of crude products fell sharply too. The 2 million barrel draw in gasoline inventories was much higher than the API report, and suggests the driving season is well and truly at full steam, when demand for gasoline tends to rise.
In case you missed it, the DoE reported the following numbers:
• Crude -5.84mm
• Cushing -464k
• Gasoline -2.08mm
• Distillates -4.07mm
Whether or not oil can now stage a meaningful rebound remains to be seen. It has certainly lost its entire risk premium associated with the Iran-Israel conflict. Perhaps it is up to the OPEC+ now to decide with the alliance due to hold discussions on July 6 to consider a further supply boost in August. Any hints of a slower supply boost could provide support to prices.
By Fawad Razaqzada, market analyst with FOREX.com
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.