Crude Oil Prices Set to Moderate After EIA Data Release.

Crude oil

WTI crude oil and Brent oil prices are currently slightly lower in Asia-Pacific trading. This signals the potential end of the market trend that sent WTI above the $100 per barrel mark. In addition, a dwindling in the USD caused a blow to prices, reducing the cost of transactions of foreign buyers in USD.

However, the US Dollar is softer, and equity indexes across APAC are rising. Gasoline and distillate stocks are also increasing.

The American Petroleum Institute reported a 1.86-million-barrel increase this past week, beating analysts’ expectation of a 333k barrel build. Traders may sell off available oil ahead of tonight’s US inventory report from the Energy Information Administration (EIA). According to a survey carried out by Bloomberg, traders expect a 748k barrel build in crude oil inventories for the last week.

 Prices might shoot up beyond expectation, but the tight storage capacity might limit it. Stockpiles at Cushing, Oklahoma, WTI’s immediate delivery and pricing points are near dangerously low, with only 21.6 million barrels in storage. The storage hub up to around 20 million barrels for normal operations; reaching that might set oil prices higher. In addition, overseas demand has reduced in recent weeks, influencing the flow of oil going to the Gulf Coast for shipment.

Overall demand is wholesome, following the stability in the WTI prompt spread, which evaluates the price difference between the current and next month’s contract. However, whether the EIA data tonight is bearish or not, prices might be unable to fall, considering the tightness of storage levels.

This Post Has One Comment

Leave a Reply

Contact Us

Disclaimer

Forex, Crypto, Options, and Binary Options have both large potential rewards and large potential risks. Therefore, before investing or trading any of the assets, ensure you are aware of and willing to accept the accompanying risks. Do not trade money you cannot afford to lose.

All Rights Reserved. None of the content of this website can be published elsewhere by any means without the prior consent of the owner(s). Please, check our terms & conditions and privacy policy before continuing to use this website.

This website and its owner(s) are not in any way liable for any incurred loss, whether caused by the information provided on this website or otherwise. The use of this website, including the content and information provided, is the user’s sole liability.