Crude Oil Hits Resistance Following Diverging Inventory Reports

Crude oil prices were nearly unchanged on Wednesday morning in the U.S. following diverging reports that showed declining inventories, falling production and increasing inventories. The American Petroleum Institute reported a decline in inventories by 1.2 million barrels, while the Department of Energy showed a build. The EIA reported in its short term energy outlook that production declined by 120K barrels in September which was more than expected.

Prices had broken out until the DOE reported its inventory report. U.S. crude oil imports averaged about 7.1 million barrels per day last week, down by 486,000 barrels per day from the previous week. U.S. commercial crude oil inventories increased by 3.1 million barrels from the previous week. Gasoline inventories increased by 1.9 million barrels last week, and are above the upper limit of the average range. Distillate fuel inventories decreased by 2.5 million barrels last week but are in the middle of the average range for this time of year. Total commercial petroleum inventories increased by 2.3 million barrels last week.

On the demand side, total demand over the last four-week period averaged 19.3 million barrels per day, down by 0.3% from the same period last year. Over the last four weeks, gasoline demand averaged 9.0 million barrels per day, up by 4.0% from the same period last year. Distillate fuel demand averaged over 3.9 million barrels per day over the last four weeks, up by 3.7% from the same period last year. Jet fuel demand was up 6.9% compared to the same four-week period last year.

The post Crude Oil Hits Resistance Following Diverging Inventory Reports appeared first on Forex Circles.

Source:: Crude Oil Hits Resistance Following Diverging Inventory Reports