Home Gold News EIA Reports Modest Drop In US Crude Oil Inventories

EIA Reports Modest Drop In US Crude Oil Inventories

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The US Energy Information Administration (EIA) reported an oil inventory draw of 1.6 million barrels for the week to September 18 following a draw of 4.4 million barrels for the previous week. Crude stocks at the Cushing, Oklahoma, delivery hub for WTI Crude rose by 4,000 barrels in the last week, EIA said. US Crude production eased to 10.7 million barrels per day.

In gasoline, the EIA estimated an inventory draw of 4 million barrels for the week to September 18, compared with a decline of 400,000 barrels for the previous week. US Gasoline production averaged 9.3 million bpd last week, up on a week earlier, when gasoline output averaged just 8.8 million bpd.

In distillate fuels, the EIA reported a draw in stocks of 3.4 million barrels. This compares to a build of 3.5 million barrels estimated for the previous week. Distillate fuel production last week averaged 4.5 million bpd, compared with 4.4 million bpd a week earlier.

Oil Futures Fell On Thursday

Oil futures fell on Thursday on concerns the economic recovery in the United States, the world’s biggest oil consumer, is slowing as the coronavirus outbreak lingers and a resurgence in European cases led to new travel restrictions there. Both benchmarks climbed slightly on Wednesday after government data showed U.S. crude and fuel stockpiles dropped last week. Gasoline inventories fell more than expected, sliding by 4 million barrels, and distillate stockpiles, which include diesel and jet fuel, posted a surprise drawdown of 3.4 million barrels. Prices turned down after data showed U.S. business activity slowed in September, U.S. Federal Reserve officials flagged concerns about a stalling recovery, and Britain and Germany imposed restrictions to stem new coronavirus infections — all factors affecting the fuel demand outlook. On the supply side, the market remains wary of a resumption of exports from Libya, although it is unclear how quickly it can ramp up volumes. Libya’s National Oil Corp (NOC) seeks to boost output to 260,000 bpd by next week.

TREND : WEAK BEARISH

Time                                      :           24/09/2020

Pivot                                      :           39.81

Technical View                     :             LONG ABOVE 40.01

Target                                   :            40.21, 40.63, 41.46, 42.41

Technical View                     :             SHORT BELOW 39.61

Target                                   :            39.41, 38.72, 38.14, 37.21

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