EIA Reports 3.626 Million Barrel Weekly Rise In U.S. Supply
Shain Vernier • 1 min read
The weekly crude oil inventory cycle is complete and American supply is up. Earlier this morning, the U.S. Energy Information Agency (EIA) reported that crude oil inventories grew by 3.626 million barrels. This figure came on the heels of yesterday’s API number of -0.879 million barrels. Although conflicting, both the EIA and API reports outpaced projections by at least 2 million barrels.
On the WTI front, today’s price action reflects the growing oil supply. For the session, CME September WTI futures are off about 3%, currently trading near $68.50. The primary catalysts for the selloff are an uptick in the USD, Delta variant fears, and waning summertime demand. If we make an early transition to fall seasonality, WTI futures and the USOIL CFD are in for more bearish action.
The crude oil COVID-19 crash of April 2020 appears to be fresh in energy trader’s minds. And, reports out of Wuhan that all 12 million residents are to be tested for COVID-19 suggests that more crippling economic lockdowns may be on the way. If another set of March 2020-esque shutdowns hits the markets, then it’s anyone’s guess how low crude oil can go this winter.
EIA Report Sends Crude Oil Prices South
Right now, USOIL is in a freefall. Prices are down more than 1% since this morning’s EIA report.
Overview: For the time being, it looks like institutional traders are revising their views on global oil. COVID-19 and the USD are the two biggest market drivers. Given the recent bullish performance of the USD and evolving Delta fears, a neutral bias is currently warranted for USOIL