EIA Crude oil inventories saw another jump this week as supply continues to push prices down. The week prior saw an additional 10.3 million barrels added to the growing inventories - however, a number of factors such as OPEC talks and a weaker dollar index may be causing a rebound in crude oil prices.
Key Takeaways
- Refineries operated at 92.7% of their full operable capacity last week.
- US crude oil imports averaged 7.6 million barrels per day last week, an increase of 102,000 bpd from the week prior.
- Refinery inputs averaged 16.9 million barrels per day during the week ending November 16, 2018.
- Distillate fuel production averaged 5.2 million barrels per day.
- Gasoline inventories dropped 1.3 million barrels per day.
Gasoline inventories saw a 1.3 million bpd drop which may help offset the falling price action, although gasoline inventories are still above average at the moment. Distillate fuel inventories dropped 100,000 bpd compared to a 3.6 million bpd drop the week before.
Oil prices fell up to 6% and more for West Texas Intermediate crude oil yesterday after President Trump announced plans to retain the alliance of Saudi Arabia following recent controversy and uncertainty, stating that prices would be “through the roof” if the alliance was broken due to the resulting supply drop.
OPEC, however, is discussing the prospect of introducing more supply cuts following the decision six months ago to end cuts and increase production. These talks may be counteracting the negative price pressure, as well as the news that India’s crude oil imports have hit a seven-year high, and the price of oil has undergone a moderate rebound today accordingly.
Market Response
With firmer stock markets and a weaker USD last night, oil prices have recouped some recent losses and gold prices have seen healthy growth.
Though not always correlated, sudden shifts in the price of oil as seen yesterday can influence the price of stocks and commodities as well. Today spot gold is trading at $1,227.17/oz and up 0.67% while December Comex Futures are trading at $1,227.50 and up 0.52%.
Gold Price Chart
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