FXEMPIRE
All
Ad
Advertisement
Advertisement
Vladimir Zernov
Add to Bookmarks
WTI Crude Oil

Oil Video 21.10.20.

Advertisement

U.S. Crude Inventories Declined By 1 Million Barrels

Yesterday, API Crude Oil Stock Change report indicated that crude inventories increased by 0.58 million barrels. However, today’s EIA Weekly Petroleum Status Report showed that crude inventories decreased by 1 million barrels, suggesting tha the downside trend in inventory levels continued.

Advertisement
Know where WTI Crude Oil is headed? Take advantage now with 

Trading Derivatives carries a high level of risk to your capital and you should only trade with money you can afford to lose. Trading Derivatives may not be suitable for all investors, so please ensure that you fully understand the risks involved, and seek independent advice if necessary. A Product Disclosure Statement (PDS) can be obtained either from this website or on request from our offices and should be considered before entering into a transaction with us. Raw Spread accounts offer spreads from 0.0 pips with a commission charge of USD $3.50 per 100k traded. Standard account offer spreads from 1 pips with no additional commission charges. Spreads on CFD indices start at 0.4 points. The information on this site is not directed at residents in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

While API Crude Oil Stock Change reports have a short-term impact on the market, EIA reports have more influence.

According to EIA, gasoline inventories increased by 1.9 million barrels while distillate fuel inventories decreased by 3.8 million barrels. Most likely, traders will be alarmed by the increase of gasoline inventories which suggests that gasoline demand recovery has stalled.

U.S. domestic oil production declined to 9.9 million barrels per day (bpd) as the negative impact from hurricanes persisted. It should be noted that crude inventories declined by just 1 million barrels while U.S. domestic oil production was down by 0.6 million bpd, so oil demand in the U.S. remained muted.

In total, this was not a bullish report despite the decrease in crude inventory levels. Gasoline inventories increased, and it looks like demand remains soft.

Oil Continues To Ignore The Recent Developments In Europe

While oil is losing ground today after an unsuccessful attempt to settle above the resistance at $41.50, it has managed to show material strength in recent days despite the alarming news from Europe.

Currently, European countries struggle to contain the second wave of coronavirus and are forced to introduce new restrictions.

The latest news on this front came from Czech Republic, where government decided to shut all non-essential shops and limit movements to essential trips in order to deal with the rising number of new cases.

Current data shows that countries like UK, France, Spain, Italy, Poland, Belgium and Netherlands have significant problems on the virus front, and the introduction of new anti-virus measures looks like a plausible scenario.

However, it remains to be seen whether oil traders will pay attention to the latest developments in Europe or focus on U.S. stimulus negotiations and the recent weakness of the U.S. dollar. A weak U.S. dollar is bullish for dollar-denominated commodities like oil and could provide some support to oil at a time when the future pace of demand recovery is under question.

For a look at all of today’s economic events, check out our economic calendar.

Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Trade With A Regulated Broker