Oil Price Fundamental Daily Forecast - EIA Report Expected to Show 1.5M Draw




Oil Price Fundamental Daily Forecast - EIA Report Expected to Show 1.5M Draw
Oil Price Fundamental Daily Forecast - EIA Report Expected to Show 1.5M Draw  

U.S. West Texas Intermediate and international-benchmark Brent crude oil futures are inching lower on Wednesday ahead of today's government inventories report. The early price action indicates investors are showing little reaction to yesterday's surge in prices, fueled by the hope that the U.S. and China will return to the negotiation table and the small draw reported by the American Petroleum.

At 08:53 GMT, August WTI crude oil futures are trading $54.03, down $0.10 or -0.18% and August Brent crude oil futures are at $61.82, down $0.32 or -0.51%.

Prices rose sharply on Tuesday after President Trump said preparations were being made for him to meet Chinese President Xi Jinping at the G20 summit in Osaka, Japan next week. The summit starts on June 28.

The surge in prices was all about future demand. The price action indicates weak shorts were driven out of the market on the thought that renewed trade talks could eventually lead to a trade deal that could lead to increased future demand.

In other news, prices were under pressure early Tuesday on the news that Japan's exports fell for a sixth straight month in May as China-bound shipments weakened, underlining the impact of the trade war.

Tensions in the Middle East remain high with the U.S. sending 1000 troops into the region. However, without an actual disruption in supply, this story is likely to be pushed to the back-burner.

The OPEC-led production cuts along with the sanctions against Iran and Venezuela continue to provide support. In the meantime, traders are becoming more optimistic that OPEC and its allies will extend the plan beyond the June 30 deadline. The cartel is still trying to hammer out the dates of its important meeting.

American Petroleum Institute Weekly Inventories Report

Late Tuesday, the API reported a small draw in crude oil inventory of 812,000 barrels during the week-ending June 13. Traders were looking for a much larger 2.033-million barrel drawdown in inventories.

The net build is still a very large 34.02 million barrels so far this year.

Gasoline inventories rose during the week-ending June 13 in the amount 1.46 million barrels. Traders were looking for a 1.067 million barrel build. Distillate inventories fell by 50,000 barrels for the week.

Daily Forecast

Barring any fresh news regarding Trump's meeting with Xi, the direction of the crude oil market on Wednesday is likely to be determined by trader reaction to the U.S. Energy Information Administration's (EIA) weekly inventories report. It is expected to show a 1.5 million barrel draw down. Prices could rise if the draw is bigger than forecast.

This article was originally posted on FX Empire

COMMENTS

More Related News

Justice Dept. ratchets up antitrust scrutiny of Big Tech
Justice Dept. ratchets up antitrust scrutiny of Big Tech

The U.S. Department of Justice opened a sweeping antitrust investigation of major technology companies and whether their online platforms have hurt competition, suppressed innovation or otherwise harmed consumers. It said the probe will take into account "widespread concerns" about social media, search engines and online retail services. Its antitrust division is seeking information from the public, including those in the tech industry.

Trump sues House panel, NY to protect state tax returns
Trump sues House panel, NY to protect state tax returns

Opening up another legal front against the Democrats investigating him, President Donald Trump on Tuesday sued the House Ways and Means Committee and New York state officials to prevent his state tax returns from being turned over to the congressional committee. The lawsuit seeks an injunction to block the application of a new New York state law that could allow the Democratic-controlled House and Ways Means Committee to obtain the returns. The lawsuit, filed in Washington, comes amid a furious White House attempt to prevent the president's tax returns to wind up in Democratic hands.

Iran announces arrests, death sentences as CIA spy ring busted
Iran announces arrests, death sentences as CIA spy ring busted

Iran arrested 17 suspects and sentenced some to death after dismantling a CIA spy ring, an official said Monday, as tensions soar between the Islamic republic and arch-enemy the United States. Security agencies "successfully dismantled a (CIA) spy network," the head of counter-intelligence at the Iranian intelligence ministry, whose identity was not revealed, told reporters in Tehran. Tehran has been at loggerheads with Washington and its allies since May 2018, when President Donald Trump unilaterally withdrew the US from a landmark 2015 deal putting curbs on Iran's nuclear programme in exchange for sanctions relief.

'Our paychecks bounced': US workers in limbo as coalmines suddenly close

Blackjewel files for chapter 11 in a move critics say is increasingly used to avoid paying workers what they are owed A mother and daughter walk past a line of miners' cars down Highway 421 in Harlan, Kentucky. Many questions about Blackjewel's operations have not been answered. Photograph: Alton Strupp

Voice Of America Ignores Reasons For Trump
Voice Of America Ignores Reasons For Trump's Criticism Of Rep. Ilhan Omar

Ilhan Omar, but failed to include most of the reasons for the criticism.VOA wrote "Trump has found his latest target for acerbic ridicule - a hijab-wearing Muslim newcomer to Congress named Ilhan Omar."The news agency mentioned briefly only two instances of Omar's anti-Semitic remarks, referring to one as playing "off tropes questioning the influence of Jewish money in American politics."Trump began tweeting Sunday about how the "'Progressive' Democrat Congresswomen…should go back and help fix the totally broken and crime infested places from which they came. Then come back and show us how it's done."The tweets were likely aimed at Democratic Reps. Omar, Alexandria Ocasio-Cortez of New...

Leave a Comment

Your email address will not be published. Required fields are marked with *

Cancel reply

Comments

Top News: Economy

facebook
Hit "Like"
Don't miss any important news
Thanks, you don't need to show me this anymore.