Home Gold News EIA Reports 4.4 Million Barrels Drop In US Crude Inventories

EIA Reports 4.4 Million Barrels Drop In US Crude Inventories

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The US Energy Information Administration reported a crude oil inventory draw of 4.4 million barrels for the week to September 11th 2020. At 496 million barrels, the EIA said, crude oil stockpiles continue to be above the five-year average for this time of the year. Oil stored at Cushing, Oklahoma – the delivery hub of WTI Crude fell by 74,000 barrels after a build of 1.8 million barrels the prior week.

Gasoline inventories fell 400,000 barrels in the second week of September. US Gasoline production averaged 8.8 million bpd in the week to September 11th, compared with 8.9 million bpd a week earlier. In distillate fuels, the inventories added 3.5 million barrels in the second week of September. Distillate production averaged 4.4 million bpd last week, unchanged on the week.

US crude oil imports averaged 5.0 million barrels per day last week decreased by 416,000 barrels per day from the previous week. Over the past four weeks, crude oil imports averaged about 5.3 million barrels per day, 20.1% less than the same four-week period last year. Total motor gasoline imports (including both finished gasoline and gasoline blending components) last week averaged 600,000 barrels per day, and distillate fuel imports averaged 112, 000 barrels per day.

Oil prices were mixed in early trade on Thursday

Oil prices were mixed in early trade on Thursday, just clinging to overnight gains, as concerns about weak fuel demand were in the frame again after Hurricane Sally blasted through the Gulf of Mexico into the southeastern United States. Prices were mostly in negative ground in early trade after a bigger than expected rise in U.S. distillate stockpiles, which include diesel and heating oil, raised alarm about fuel demand in the world’s biggest economy. Those stocks have jumped to their highest level for this time of year since at least 1991, and U.S. refiners’ margins for producing distillate are the lowest in 10 years. On the supply side, energy companies were starting to return crews to offshore oil platforms in the Gulf of Mexico after Hurricane Sally roared onshore. Nearly 500,000 barrels per day (bpd) of U.S. Gulf of Mexico offshore oil output was shut ahead of the latest hurricane to hit the region. Investors look to the joint ministerial monitoring committee (JMMC) by OPEC+ on Thursday to discuss compliance with deep cuts in production, although analysts do not expect further reductions to be made despite Brent prices falling below $40 per barrel in recent days.

TREND : WEAK BEARISH

Time                                      :           17/09/2020

Pivot                                      :           39.62

Technical View                     :             LONG ABOVE 39.82

Target                                   :            40.02, 40.57, 41.18, 41.98

Technical View                     :             SHORT BELOW 39.42

Target                                   :            39.22, 38.76, 38.06, 37.35

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