Crude Oil Falls on API Report of Largest Supply Gain in 3 Months

Talking Points:

• Crude oil falls as API reports a 14.2 million barrel supply gain last week
• Official EIA data is expected to show a smaller gain of 2695k tomorrow
• A relatively light economic calendar may see markets focused on Washington DC from here

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Crude oil prices fell more than 1 percent during the final hours of Tuesday’s session as the American Petroleum Institute released its weekly stockpile report. API said that the United States saw an increase of 14.2 million barrels last week.

For reference, the last time the country experienced similar gains was in October 2016, prior to the agreement between OPEC officials to curb production in an effort to raise prices. By contrast, official EIA data is expected to show a gain of just 2695k tomorrow.

As Currency Strategist Ilya Spivak mentioned, a relatively light economic calendar will likely keep markets on the lookout for news-flow coming out of Washington D.C. as the administration has yet to deliver details on promised fiscal stimulus efforts.

Chart compiled in Tradingview