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Huge Inventories Drop
Oil markets managed to retain a positive tone this week as the latest data from the Energy Information Administration offered some support.
The EIA reported that in the week ending June 26th, US crude inventories declined by 7.2 million barrels.
This downward adjustment to inventory levels far exceeded analyst expectations for a 710k barrel drop. It also brings inventory levels down from previous record highs of 540.7 million barrels.
However, despite the move, inventories remain 15% above the five-year seasonal average. This is on the back of the massive drop in demand noted during the worst of the COVID-19 lockdown period.
Net US imports were greatly reduced over the week, falling by 506k barrels per day.
Prior to this reading, imports had been one of the key drivers of the rise in inventory levels. This is due to the receipt of shipments booked during the price crash suffered in the Saudi – Russia price war earlier in the year.
Shipments from Sau...
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