Crude Oil Storage Report - Sept 14

[dan_s]

U.S. crude inventory unexpectedly fell in the latest week, EIA reported Wednesday.
The EIA said crude stocks fell by 559,000 barrels after a huge fall of 14.5 mn the previous week.
Crude inventories were forecast to rise by 3.8 mn barrels.
Gasoline stocks rose by 567,000 barrels after a fall of 4.2 mn the previous week.
Gasoline inventories were forecast to rise by 343,000 barrels.

[dan_s]

Speculators set the daily oil price. It is impossible to know for sure what drives them, but my guess is that they are worried about demand post summer driving season. Comment below is from the Investing.com website: http://www.investing.com/commodities/crude-oil

Save the website as one of your favorites. They have several good analysts that post there.

"Oil prices went on a wild ride Wednesday as an unexpected drop in crude inventories caused a knee jerk bullish reaction that pulled West Texas Intermediate off a one-week low and into positive territory. Within 20 minutes of the release, investors seemed to change their mind as they digested a larger than expected build in distillate and gasoline inventories and oil prices tumbled to intraday lows."

Obviously, the draw from crude oil inventories was unexpected but not that big of a deal. Tankers are avoiding the Gulf of Mexico during the peak of hurricane season.

[dan_s]

The International Energy Agency's monthly Oil Market Report came out yesterday. You should all read the highlights of the report at the link below. They lowered their demand forecast a bit, which explains yesterday's dip in oil price. - Dan

https://www.iea.org/oilmarketreport/omrpublic/