Oil Price - July 12

[dan_s]

The American Petroleum Institute Tuesday reported a fall in U.S. crude stocks of 8.1 million barrels to 495.6 million.

The Energy Information Administration is due later Wednesday to release the official inventories report.
The EIA is forecast to report a drop in crude stocks of 2.85 million barrels in the latest week.

Oil's gains remain capped by ongoing supply concerns with major producers under growing pressure to beef up their output cuts.
OPEC and non-OPEC producers, including Russia, have agreed to curb output by 1.8 million barrels a day through to March.
Major OPEC producers are due to meet later this month in Russia to discuss the market situation.
Nigeria and Libya, which have been exempt from the OPEC-led cuts, are invited to join the talks.
OPEC's monthly report showed notable increases by both countries in June compared with May. Iraqi output also rose.
Overall OPEC output rose by 393,500 barrels per day to 32.611 million barrels.
OPEC left its forecast for world demand for this year unchanged while slightly lowering its forecast for supply.
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If the EIA reports a storage draw anywhere close to what API reported, we should see oil prices firm up.

[setliff]

<we should see oil prices firm up.>

not if GS has their way!

[dan_s]

The Energy Information Administration said crude inventories fell by 7.564 million barrels after a drop of 6.299 million barrels the previous week.
Crude inventories were forecast to fall by 2.850 million barrels.
Gasoline stocks fell by 1.647 million barrels after a fall of 3.669 million barrels the previous week.
Gasoline inventories were expected to rise by 1.147 million barrels.

If we keep getting reports like this, even GS will not be able to keep oil prices down much longer.

Demand for refined products really picks up in the 3rd quarter. It happens every year.

[dan_s]

IEA "Oil Market Report" should come out in the next few days. It will give the market a more global view of supply/demand.