Thu 7 Dec 2017, 10:00 GMT

Oil dropped after bearish oil EIA report


By A/S Global Risk Management.



Yesterday's EIA stats showed a draw in crude of 5,6 mbbl a build in distillates of 1,7 mbbl and a huge build in gasoline of 6,8 mbbl. One could argue that the stats were bullish in terms of crude, but the net level was a bearish build.

Most likely the dust has settled from the OPEC meeting, and market focus is returning to fundamentals, liklely also in absense of other major news and events. The fundamentals are looking quite bearish in terms of U.S. crude production. The U.S. crude production once again reached 30-year record level of 9,71 mbdp up 25 kbpd from last week. Despite the build in products, U.S. is exporting a lot of crude, distillates and gasoline at the moment meaning that world demand is still going strong. U.S. refineries are running at above normal levels these weeks to accommodate the crude inflow and world demand. Additionally, the US refiners are likely building up gasoline storage for next year, so expect further gasoline builds in the weeks to come.

Macro figures are being released today and the next couple of days. Tomorrow US unemployment rate and nonfarm payrolls will be released.

BP  

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