Oil Price Fundamental Daily Forecast – Pressured by Bearish API Numbers, EIA Report on Tap

U.S. West Texas Intermediate and international-benchmark Brent crude oil futures are edging lower shortly before the regular session opening. Some traders are taking profits after a U.S. industry report showed an unexpected build and ahead of the official government inventories data later today. Losses are likely being limited by expectations of increased demand growth in 2020.

At 11:19 GMT, February WTI crude oil is trading at $60.46, down $0.41 or -0.67% and February Brent crude oil is at $65.84, down $0.26 or -0.39%.

American Petroleum Institute Weekly Inventories Report

The API reported a surprise crude oil inventory build of 4.7 million barrels for the week-ending December 13. Analysts were looking for a 1.288-million-barrel draw.

After Tuesday’s reported inventory move, the net inventory moves so far this year stand at a build of 3.22 million barrels for the last 51 weeks, using API data, according to Oilprice.com.

The API also reported a huge build of 5.6 million barrels of gasoline for the week-ending December 13, compared to analyst estimates of a smaller build of 2.178-million barrels for the week.

Distillate inventories saw a large build of 3.7 million barrels for the week, while Cushing inventories fell by 300,000 barrels.

Upbeat Demand Growth Expectations

Given the trade agreement between the United States and China, traders have turned more optimistic over increased future demand. These expectations are helping to offset some of the bearishness from the API inventories data.

Daily Forecast

Later today at 15:30 GMT, the U.S. Energy Information Administration (EIA) will release its latest inventories data for the week-ending December 13. It is expected to show a 1.5 million-barrel drawdown.

Meeting or beating the estimate will be bullish for crude oil prices. A build won’t be a surprise since the API already reported, however, it is still likely to exert a bearish influence on prices.