EIA Crude Oil Inventories Decline 0.88 Million Barrels, WTI Focused On OPEC

The latest Energy Information Administration (EIA) data recorded a draw of 0.88mn barrels compared with a forecast build of around 0.8mn and after a draw of 1.26mn the previous week.

Overall stocks remain 6.8% above the level seen in the same week last year.

The API data released on Tuesday also reported a draw and markets were therefore braced for a decline in EIA inventories. There was a weekly build of 2.1mn barrels for gasoline for a 4.3% annual increase and distillate inventories recorded a build of 5.0mn barrels to give an annual increase of 6.8%.

There was a weekly increase in output of 0.1% to 8.699mn bpd, although output is still just over 0.5mn bpd lower than in the same week of 2015.

The data overall was close to the API release, which curbed the overall impact. More importantly, markets were focussed on the OPEC Ministerial meeting where OPEC appears to have agreed a deal to cut overall production by 1.2mn bpd, although this includes a cut from non-OPEC members and the meeting is still in progress.

WTI overall fluctuated around $48.50 p/b after the data having earlier surged over 8% to highs just below $49.00 p/b after first reports of the OPEC agreement.

Tim is a contributing author to EconomicCalendar.com. He is an economist and has been involved in financial markets for over 20 years as an analyst. He specialises in global economic trends, macro policy and central banks. Extensive knowledge, experience and data mining is used to anticipate trends in equities, bonds and forex with a contrarian slant. He is a graduate of the University of York with a degree in Economics/Econometrics.