Crude Oil Extends Gains into Wednesday with Decrease in US Oil Stockpile
- US crude oil rose 5.7% through the day’s settle, pushing the market above $47
- EIA data showed US crude oil stocks fell 2.1 million barrels last week
- The decrease in oil stock inventories follows forecasts from OPEC
US crude rallied above $47 during Wednesday’s session in a move that topped a 5 percent gain. The sharp upturn in crude followed data released by the U.S. Energy Information Administration (EIA) showing US stocks fell by 2.1 million barrels to 455.89 million barrels in the week of ending September 11. The decrease in stockpile numbers gave crude oil a boost but the release also contained data that showed gasoline and distillate stocks rose by 2.84 and 3.06 million barrels respectively.
On Tuesday, the White House expressed that they do not support the bill to lift the ban on US oil exports, which also gave support to the price of crude oil. The Organization of the Petroleum Exporting Countries (OPEC), in their monthly oil report released earlier in the week, saw signs of slowing US oil production and expect a reduction in supply of US shale oil to 100,000 bpd next year. Adding to the recent supply-demand dynamic behind crude, the Department of Energy’s implied demand measure for the last week increased 2.3 percent to 16.61 million barrels per day.
To see a technical outlook for crude oil, along with correlated markets that moved along with it, check out an article here.