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To View the Most Recent Crude Oil in storage report please click here.
11/16/2005
The weekly Energy Administration Crude Oil Inventories report has produced an unexpected surprise to the market participants: U.S. crude stocks fell 2.2 million barrels last week to 321.4 million barrels as imports slumped under 10 million barrels a day. Gasoline stocks fell 900,000 barrels to 200.2 million barrels even as demand slowed.
Well, looking back, this shouldn't have been a surprise, since the European countries have stopped sending their oil and oil products to US Another surprise was the build of 2.6 million barrels in distillate stocks, including 1.8 million barrels in heating oil stocks.
Believe it or not, but this week's data release was just the exact opposite of what the most market analysts expected. (They expected a build in crude and gasoline and a drawdown in the distillates). Was yesterday oil price an extreme since so many traders got it wrong? The answer will be in the technical action of the price. If we will see a strong move upwards on short covering, as well as new longs coming in, the price may break out of the downward channel (see my previous COTD: and either go into a flat or stage a moderate rally.
P.S. OPEC Production estimates. (In millions of barrels a day)
Iraq is really facing some difficulties with its oil production. Most of the declines in OPEC production are originating in Iraq.
This is not a trade recommendation and no one should treat it as such.
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Recommended Links on this topic: Commitment of Traders Report - Crude Oil |
