Amid oil prices reaching some sort of temporary equilibrium and trading volatility being significantly lower than in the previous weeks, the oil market now expects new impulses that would indicate future direction. Even though the impact of the blackout in Venezuela, second this month, as well as a cooling down of US-China trade talks is more substantial than that of the Deer Park fire in Houston, the oil community was actively speculating about how tough would be the safety regulations that either federal or state authorities are expected to put forward, once they finish their respective investigation.
If reality defies the API’s estimate that US crude inventories rose 1.9MMbbl week-on-week, one can expect a further upward trajectory for oil prices. By Wednesday aftenoon, the global benchmark Brent traded at 67.5 USD per barrel, whilst WTI stopped short of surpassing the 60 USD per barrel mark, trading at around 59.7 USD per barrel.
1. Biggest US Crude Draw in Nine Months
- US Commercial crude stocks have dropped a whopping 9.6 MMbbl week-on-week to 439.5MMbbl on the week ended March 15, the largest drawdown since July 2018, but saw another moderate 2.8 million barrel build for the week ending March 22nd.
- Last week’s draw came on the back of US crude exports surging to 3.4mbpd, while imports rose to 6.9 mbpd.
- As for crude stocks changes on the week ended March 22, the closure of the Houston Ship Channel could…