Oil prices are higher since last week's inventory data, thanks in large part to the chaos occurring in the Strait of Hormuz sparking some war premium back into a slightly squeeze-prone-positioning.
“Oil squeezed higher last week on tensions in the Middle East, but with so much uncertainty regarding the trade war and global economy, the demand argument is too shaky for a sustainable rally just yet,” Tyler Richey, co-editor at Sevens Report Research in Palm Beach Gardens, Florida, wrote in a note to clients.
But for tonight (and tomorrow's EIA data), all eyes will be back on inventories...
Crude -7.55mm (-2.9mm exp) - biggest draw since March
After last week's crude draw, expectations are for more of the same this week and API reported a large 7.55mm crude draw - the biggest since March along with a sizable draw in Gasoline...
“It feels like demand is very, very weak,” said Michal Meidan, head China analyst at Energy Aspects. “On the supply side, the consensus really was OPEC rolling over the supply cuts,” so it’s quite surprising that prices haven’t risen further, especially with all the geopolitical stress, she said.
WTI hovered just below $58 ahead of the inventory print , but as API data hit, it spiked to the highs of the day...