Crude Oil Storage Report - Dec 29
Posted: Thu Dec 29, 2016 12:01 pm
The U.S. Energy Information Administration said in its weekly report that crude oil inventories rose by 0.614 million barrels in the week ended December 23, compared to forecasts for a draw of 2.060 million barrels. The American Petroleum Institute had reported a much larger build of 4.2 million barrels. Last week API announced that storage had declined by 4.2 million barrels.
Both gasoline inventories and distillate stockpiles registered unexpected stock draws.
These weekly storage reports are "SWAGs" at best and they are even more prone to error during the year-end holiday season. Crude oil traders will be driven in 2017 by news coming out of OPEC member countries that are or are not in compliance with their agreement to cut production. I expect Saudi Arabia, Kuwait and UAE to announce big cuts early in January.
Both gasoline inventories and distillate stockpiles registered unexpected stock draws.
These weekly storage reports are "SWAGs" at best and they are even more prone to error during the year-end holiday season. Crude oil traders will be driven in 2017 by news coming out of OPEC member countries that are or are not in compliance with their agreement to cut production. I expect Saudi Arabia, Kuwait and UAE to announce big cuts early in January.