EIA Reports 7.614 Million Barrel Supply Draw - Forex News by FX Leaders
EIA

EIA Reports 7.614 Million Barrel Supply Draw

Posted Wednesday, June 23, 2021 by
Shain Vernier • 2 min read

 WTI crude oil continues its bullish ways, having already posted an intrasession high above $74.00 per barrel. Today’s strength comes on the heels of this week’s exceedingly negative API and EIA inventory figures. Earlier, the EIA reported a 7.614 million barrel draw on U.S. supplies. In addition, gasoline inventories are down (-2.930 million) and gasoline production is lagging last week’s figures. For now, peak consumption season is driving crude oil demand and prices markedly higher.

It’s always a good idea to at least take a brief look at the weekly U.S. crude oil stocks numbers. Here’s this week’s hard data:

Event                                                       Actual                  Projected             Previous

API Crude Oil Stocks                             -7.199M                 -3.625M              -8.537M 

EIA Crude Oil Stocks                             -7.614M                 -3.942M              -7.355M

Well, the numbers don’t lie ― crude oil and refined fuel consumption is up in concert with summertime in the Northern Hemisphere. Accordingly, WTI prices are on the cusp of $75.00 with today’s range for August futures coming in at $74.25-$72.82. Traded volumes have been formidable, with 300,000 contracts of August WTI having already changed hands. Worthy of note is September WTI posting a robust 100,000 in contract volume. These figures are indicative of a hot crude oil market and lagging EIA stocks figures.

EIA Reports Draw, WTI Rallies To $74.25

It has been an active week on the financial markets. Crypto chaos and bullish WTI futures have certainly stolen the show as U.S. stocks have held on to Monday’s gains.

USOIL

Bottom Line: Although a bullish bias is warranted for WTI crude oil, a shorting opportunity is likely to set up in the coming days. Until elected, I’ll have sell orders in August WTI from $74.69. With an initial stop loss at $75.26, this trade produces 40 ticks on a short-term rejection of the $75.00 handle.

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