Oil Price - Aug 27

[dan_s]

Tuesday's gain was because the "supreme being" of Iran refused to meet with Trump unless the U.S. drops all sanctions. THAT'S NOT HAPPENING.

If EIA confirms the API report below, Wednesday should be interesting.

The American Petroleum Institute reported late Tuesday that U.S. crude supplies dropped by 11.1 million barrels for the week ended Aug. 23, according to sources. The API also reportedly showed a stockpile decline of 349,000 barrels in gasoline, while distillate supplies fell by 2.5 million barrels. Inventory data from the Energy Information Administration will be released Wednesday. The EIA data are expected to show crude inventories down by 4.7 million barrels last week, according to a survey of analysts conducted by S&P Global Platts. The survey also forecast a weekly supply decline of 530,000 barrels for gasoline and an inventory climb of 700,000 barrels for distillates. October West Texas Intermediate crude CLV19, +3.82% was at $55.43 a barrel in electronic trading, up from the contract's $54.93 settlement on the New York Mercantile Exchange.

Friday's active drilling rig count is important. IMO we aren't drilling enough wells to hold production flat.