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Surprise build in inventories; drop in OPEC output (Brent: $50.1)

Yesterday was another day of volatile trading with bearish inventory report and increased likelihood of U.S. approving the Iranian nuclear program agreement. A lifting of sanctions against the oil-rich country could release a wave of oil to the market over the coming period.

U.S. crude oil inventories confirmed Tuesday's API trend and rose unexpectedly by 4.7 mio. barrels last week according to the weekly oil report from the EIA. In addition, crude oil imports to the U.S. increased by 656,000 barrels per day - and refinery runs fell due to outages and maintenance season.

Release: EIA oil data (Consensus)

Crude: 4.667M barrels (0.032M)
Distillates: 0.115M barrels (0.920M)
Gasoline: -0.271M barrels (-1.328M)
Refinery utilization: -1.7%

OPEC oil output in August seems to have dropped - one reason being Iraqi supply disruptions in the northern part of the country. August supply in August is estimated to be 31.71 mio. barrels per day versus 31.88 bpd. in July. Official output target of the group is around 30 mio. barrels per day. Yesterday's employment data from private-sector ADP came out higher than previous reading, but slightly lower than expected. The report precedes the official employment report tomorrow, which will be followed closely for hints of the economic state of the U.S. Today, a row of European services PMIs will be published along with European interest rate decision and U.S. Jobless Claims.