EIA US weekly oil inventories -1529K vs -4612K expected

Weekly US oil inventory data from the EIA

• Gasoline -7215K vs -3390K expected
  
• Distillates 3142K vs -2617K expected
  
• Refinery utilization -9.4% vs -4.9% expected
• Cushing +1918K
• Production estimate 10.0mbps vs 11.5 mbpd prior
• Implied demand -2.866 mbpd
  

The story here is that refineries ran slower than anticipated, which is going to continue to put a squeeze higher on gasoline prices.

This is a tough one to forecast and trade because of the ongoing effects of Hurricane Ida.
The API data from late yesterday showed:

• Crude -2882K
• Cushing +1794K
• Gasoline -6414K
• Distillates -3748K

Oil has had a wild ride today as it fell on the China SPR release but has completely recovered. At the bottom, I wrote "Counter-intuitively, I see this as bullish for oil because there's been an overhang of Chinese inventories weighing on the market."

Invest in yourself. See our forex education hub.


September 10, 2021 at 03:00AM

https://ift.tt/2VtSmov