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By Michael Poulson, A/S Global Risk Management

Oil prices increased yesterday ahead of the weekly oil inventory report from the EIA, but fell back into the late forties as the report showed unexpected builds all around. The crude oil build confirmed Tuesday's API crude oil stock build, though not quite as large. See Wednesday's details below. Over the last months, the report has pointed to draws in U.S. crude oil inventories, but the last 4 of 5 readings have pointed to builds and in the last couple of years, the months July and August have mainly seen draws. Oil refiners are traditionally heading into the maintenance season in the coming months which could affect output of refined products slightly.

Release: EIA oil data (Consensus)
Crude: 2.501M barrels (-0.455M)
Distillates: 0.122M barrels (0.400M)
Gasoline: 0.036M barrels (-1.166M)
Refinery utilization: -1.0%

Also yesterday, Iran and Ecuador met and discussed options to strengthen oil prices - following rumours that Iran might join informal OPEC and non-OPEC talks Algeria next month. Ecuador is the smallest member of OPEC, producing around 0.55 mio. barrels per day. According to the two parties, talks will continue within OPEC.

Turning to economic data, yesterday's U.S. housing data disappointed slightly after Tuesday's upbeat data. Tomorrow, the Jackson Hole symposium starts and all eyes will be on comments from central bankers and experts on the global economic outlook; especially timing of a U.S. interest rate hike. Also tomorrow, the weekly oil rig count from Baker Hughes will be published - the last two months the number of active oil drilling rigs has increased.