API reported surprising drop in U.S. crude inventories by 2.3M barrels last week, surpassing economists’ expectations of 1.5M barrel decline. This decline raises concerns about the increasing non-OPEC production, potentially leading to a surplus in global crude supplies. Following the report, the U.S. benchmark, Crude Oil WTI Futures, traded at $68.83 a barrel, showing resilience after a 3.8% decrease in the previous week. This decline marked its longest weekly losing streak since 2018.
Larger-than-expected draw in crude inventories comes amidst doubts about the extension of output-cut pledges by OPEC and its allies, OPEC+. There is a growing worry that the cuts might be overshadowed by the rising non-OPEC supply. Gasoline inventories surged by 5.8M barrels, adding another layer of concern, while distillate stocks decreased by 300,000 barrels according to the API data. The market anticipates that the official government inventory report, due on Wednesday, will reveal a 1.5 million barrel decrease in weekly U.S. crude supplies.
This data will be crucial for traders and investors gauging the trajectory of the oil market amid the ongoing uncertainties in global production and supply dynamics. In this volatile market, staying informed and seeking guidance from experts is crucial. For valuable insights and tools, visit 4xPip, a leading website in providing trading solutions. Explore their products and robots for auto trading, ensuring a comprehensive approach to your trading strategy. Don’t miss out on the latest developments; stay connected with 4xPip. Contact their customer support at [email protected] for more information and guidance.
The unexpected 2.3M barrel drop in U.S. crude inventories signals ongoing market volatility. As concerns grow about non-OPEC production, investors must stay informed and adapt strategies accordingly.