FXEMPIRE
All
Ad
Corona Virus
Stay Safe, FollowGuidance
World
96,008,788Confirmed
2,049,311Deaths
68,629,083Recovered
Fetching Location Data…
Advertisement
Advertisement
Vladimir Zernov
WTI Crude Oil

Oil Video 13.11.20.

Advertisement

Gasoline Demand Unexpectedly Rebounds

Yesterday, EIA provided its new Weekly Petroleum Status Report. The report was very interesting as its inventory data was different from the API Crude Oil Stock Change report which was published earlier this week.

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

75% of retail CFD investors lose money

According to EIA, crude inventories increased by 4.3 million barrels while gasoline inventories decreased by 2.3 million barrels. Distillate fuel inventories decreased by 5.4 million barrels.

The increase in crude inventories was driven by the surge in imports which were up by almost 0.5 million barrels per day (bpd) compared to the previous week’s levels. Meanwhile, U.S. domestic oil production remained flat at 10.5 million bpd.

Interestingly, U.S. gasoline demand rebounded from 8.34 million bpd in the previous week to 8.76 million bpd. While gasoline demand was 0.56 million bpd lower than in 2019, the sudden uptick in gasoline usage is a positive surprise since demand was trending down at this time in 2019. This downtrend lasted until the end of the year which is not surprising given the seasonality of gasoline demand.

If gasoline demand continues to increase, the oil market will get additional support. However, it remains to be seen whether gasoline demand can move higher amid a surge in the number of new coronavirus cases in the U.S.

Virus Fears Put Pressure On Oil

The recent optimism regarding COVID-19 vaccine evaporated, and oil found itself under significant pressure. Traders realized that mass vaccination is a very difficult task that will take many months, and sold oil after the major upside move.

Unlike stocks, oil is a physical product which cannot rely exclusively on hopes and forecasts – it needs real demand that will put pressure on inventory levels.

The near-term oil price dynamics depend on whether a long-term catalyst like a potential COVID-19 vaccine can offset the negative impact from short-term catalysts like European lockdowns and rising oil production in Libya.

If the market decides to take a long-term view, oil will have a chance to get to another test of the resistance at the $43 level. If short-term catalysts prevail, we’ll see another move below the $40 level.

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

  • Your capital is at risk
IMPORTANT DISCLAIMERS
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
RISK DISCLAIMER
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.
FOLLOW US