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By Michael Poulson, A/S Global Risk Management

Yesterday's weekly oil inventory report from the EIA had the same direction as Tuesday's API data with draw in crude oil stocks. The draw was almost 3 mio. barrels (API: 7.6 mio. barrels), where market consensus was a build of around 2.3 mio. barrels. For the first time in around 9 months, the total U.S. crude oil inventories are now below 500 mio. barrels. Market reaction was mixed, likely because the draw was smaller than the API draw, but still a draw where a build was expected. Brent oil price briefly touched $52 and is currently trading around $51.6.

Release: EIA oil data (Consensus)
Crude: -2.976M barrels (2.560M)
Distillates: -2.359M barrels (-0.700M)
Gasoline: 0.222M barrels (0.702M)
Refinery utilization: -1.8%

Another informal meeting between OPEC and non-OPEC oil producers is scheduled in Istanbul next week according to Algerian energy minister. The parties will discuss the implementation of the preliminary deal reached last week according to which OPEC members aim at reducing oil the group's oil output by around 700,000 barrels per day. This week, Saudi Arabia cut the November official selling price of Arab Light Crude to Asia, likely in an attempt to protect market share in a well-supplied oil market.

Turning to economic data front, yesterday's U.S. data came out stronger than expected with ISM Non-Manufacturing PMI for September at 11-month high of 57.1 (versus 51.4 for August), Services PMI at 52.3 (51.9 in August). The improved data raises chances of a soon-to-come interest rate hike by the U.S. central bank - the Fed. In our quarterly oil market outlook, we analyse the global financial situation thoroughly along with other important views on what direction the oil price is likely to take.

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A/S Global Risk Management is a provider of customised hedging solutions for the management of price risk on fuel expenses. The company has offices in Denmark and Singapore. For further details about its risk management products and services, please call +45 88 38 00 00 or email hedging@global-riskmanagement.com.