CRUDE OIL US crude oil inventories posted a decrease of 4.8 MMBbl last week, according to the weekly EIA report. Gasoline and distillate inventories decreased 2.4 MMBbl and 2.5 MMBbl, respectively. Total petroleum inventories posted a decline of 4.9 MMBbl. US crude oil production decreased 100 MBbl/d from the week before, per EIA, while crude oil imports were up 0.9 MMBbl/d, to an average of 6.9 MMBbl/d. The WTI market opened the week falling on its face, as traders felt the impact of the US imposing 15% tariffs on some Chinese products and China placing new duties on US crude. Adding to this negativity was the US manufacturing data, which showed activity declining in August for the first time in three years. The market regained support on economic data showing continued resilience in China’s manufacturing and service sectors. Support was further bolstered by the announcement that the US and China have agreed to resume face-to-face negotiations in October. However, this support remains tepid at best. The key thing for the crude market is the deterioration of demand conditions globally. As such, the ongoing trade war between the world’s two largest economies will continue to put a damper on market sentiment.… continue reading
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Source: CTRM Center