Oil doesn't agree. What happened?
Hi Tim,
The API report yesterday was bearish.
The EIA report this morning was bullish but the markets have acted like by the rumor, sell the fact type action as the bullish EIA report caused a brief spike higher, followed by sell off.
Same thing with the RB/Unleaded that seemed bullish but we are 4c lower.
Could be that the traders in the know, expected this and are looking ahead or just wild, impossible to predict price swings based on other things...........including and possibly most important today, strong resistance around today's highs.
We could still end up trading higher today and they will call this "profit taking".
"The Energy Information Administration reported Wednesday that U.S. crude inventories fell by 700,000 barrels for the week ended May 8. That defied a forecast by analysts polled by S&P Global Platts for an average increase of 4.8 million barrels. The American Petroleum Institute on Tuesday reported a climb of 7.6 million barrels, according to sources. The EIA data, however, showed crude stocks at the Cushing, Okla. storage hub declined by 3 million barrels for the week. Gasoline supply fell by 3.5 million barrels, while distillate stockpiles rose 3.5 million barrels. The S&P Global Platts survey had shown expectations for a supply decline of 2.5 million barrels for gasoline, while distillate stocks were forecast at 4.1 million barrels higher."
https://www.oilandgas360.com/oil-holds-near-30-caught-between-demand-loss-and-supply-cuts/
“Fears are running rife that easing lockdown measures will trigger a second wave of coronavirus infections,” said Stephen Brennoc at oil brokerage PVM.
U.S. infectious disease expert Anthony Fauci on Tuesday told Congress that easing coronavirus lockdowns could set off new outbreaks of the COVID-19 disease that has killed 80,000 Americans and badly damaged the world’s biggest economy and oil consumer.
New outbreaks have been reported in South Korea and China, where the health crisis started before spreading across the globe, prompting governments to lock down billions of people, devastating economies and demand for oil.
The U.S. Energy Information Administration (EIA) now expects world oil demand to fall by 8.1 million barrels per day (bpd) this year to 92.6 million bpd, compared with a previous forecast for a drop of 5.2 million bpd.
The agency also expects U.S. output to fall by 540,000 bpd, against a previous forecast of 470,000 bpd. It expects global output of 11.7 million bpd this year and 10.9 million bpd in 2021."
Actually meant EIA, but for some reason, my fingers typed API...
That's what I figured Tim but I knew what you meant for sure.
The MSM news seems to be greatly sensationalizing a massive threat of COVID-19 returning with a vengeance because of partially opening things up.
The incredible sensitivity of people to this and fear that is a couple of orders of magnitude greater than the reality could be part of the reason for the markets reaction today.