CRUDE OIL US crude oil inventories posted a substantial increase of 9.3 MMBbl last week, according to the weekly EIA report. Gasoline and distillate inventories decreased 2.6 MMBbl and 3.8 MMBbl, respectively. Total petroleum inventories decreased 1.6 MMBbl. US crude oil production was unchanged from the previous week, per EIA, while crude oil imports were up 0.7 MMBbl/d to an average of 6.3 MMBbl/d. WTI spent the early portion of the week drifting lower as the enthusiasm from the Phase 1 trade deal between the US and China was replaced with skepticism, as details of the agreement have yet to be put on paper. Weak global economic growth prospects presented by the IMF reinforced the primary concern of traders. Indeed, China’s GDP grew at a rate of only 6% compared to the same period in 2018, the slowest rate of expansion since the early 1990s. The data points that continue to confirm the anemic global economy will keep a lid on any rally in prices. Last week, prompt WTI futures traded in the narrowest range (high to low) since July, staying within the previous week’s range. Some volatility can be expected, though, as the November contract heads into expiry tomorrow.… continue reading
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Source: CTRM Center