WTI crude oil ended Thursday's trading session in the red, falling to $ 39.77 per barrel. The quotes were pressured by the report on changes in US oil reserves. Thus, according to a report by the Energy Information Administration (EIA) of the US Department of Energy, commercial oil reserves in the United States in the week of August 29 - September 4 increased by 2 million barrels, to 500.4 million barrels. Inventories are now 14% above the 5-year average. Analysts polled by the Wall Street Journal were expecting a drop in US oil inventories by 1.2 million barrels from the previous week. Oil stocks at the Cushing terminal (Oklahoma), from which oil traded on the NYMEX are supplied, increased by 1.8 million barrels to 54.5 million barrels. On Wednesday, the American Petroleum Institute (API) announced an increase in US oil reserves by 3 million barrels.
It should be noted that sales of oil could have been more significant if not for the offsetting impact on quotations of a drop in gasoline inventories by 3 million barrels to 231.9 million barrels, as well as stocks of distillates, including furnace and diesel fuel.
The decline in oil reserves has become another proof of the reduction in demand for hydrocarbons from the world economy. We will remind that earlier information appeared on financial markets that oil imports by China in August averaged 11.23 million barrels per day, which is below 12.13 million barrels per day in July and below the record level of 12.99 million barrels. a day in June. Against the backdrop of these data, the EIA lowered its forecast for global growth in oil demand in 2020 by 210 thousand barrels per day.
Oil market investors are looking forward to the OPEC + meeting, which is scheduled for September 17. In August, the cartel and its allies scaled back their cuts, hoping for a recovery in demand sagging due to the pandemic. The fall in prices may force the participants in the energy pact to further soften their commitments to cut production, which will lead to an increase in the supply of raw materials, as well as the risk of an even greater collapse of quotations.
WTI SellStop 36.90 TP 35.00 SL 37.50
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