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Crude Inventories Fall Again

The latest report from the Energy Information Administration this week has helped further the cause of oil bulls. The EIA reported that in the week ending July 31st, US crude oil inventories fell by 7.4 million barrels.

This comes after a massive 10.6 million barrel decline over the prior week.

The decline has helped further support the view that oil markets are beginning to rebalance now. This is in response to the steady stream of OPEC oil production cuts over the year as well as the global pickup in activity and demand thanks to the easing lockdowns.

Gasoline Inventories Rise

Despite news of yet a further large drawdown in US crude levels, the gasoline inventories number disappointed yet again.

The EIA reported a 419k barrel increase over the week, after a 700k increase the week prior. The gasoline inventories number continues to sit at odds with the headline crude inventories number. This suggests that motor demand has stalled somewhat.

This could likel...

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