This Week’s Crude Oil Inventories Are In……
Shain Vernier • 2 min read
As my colleague Arslan mentioned earlier on in the session, the API and EIA crude oil inventories are out for this week. As has been the theme for the past few days, the impact of Hurricane Harvey is most certainly felt in the crude oil markets.
Harvey Has Caused Havoc In The Gulf Coast Petroleum Industry
With all of the volatility and participation, there have been some premium trading opportunities. In fact, a great trading signal in USOIL closed a winner during the U.S. overnight session here on FX Leaders.
Check with the live trading feed throughout the trading day for ideas and updates related to this explosive market.
The API and EIA inventory numbers came out and the interpretations have been mixed. Below are the hard statistics:
Report Previous Projected Actual
API Crude Oil Stock -3.59M NA -5.78M
EIA Crude Oil Stocks -3.327M -1.908M -5.392M
Conventional wisdom towards natural disasters influencing crude oil pricing leans towards the bear. Hurricane Harvey has taken the Gulf Coast’s refiners offline. Accordingly, this is will lead to stockpiles of crude, thereby driving pricing down.
However, this point is debatable. Over 25% of U.S. drilling operations in the Gulf Of Mexico have been shut down as a result of the storm. A considerable number of crude oil storage facilities have also been compromised as a result of Harvey's wrath.
While many analysts are calling for a bearish market, there may be enough fundamentals present to keep any panic selling in check. When coupled with concerns over North Korea, the long-term impact on Texas crude oil storage capacity may inhibit future supply and production levels.
These factors alone may ultimately lead bulls into the market.