Oil drops despite large US inventory draw
WTI crude oil is at the lows of the day, down $1.62 to $72.49.The Boxing Day rally has now been completely wiped out and crude is lower on the week.The drop in oil comes despite a bullish weekly oil inventory report that showed:Crude -7114K vs -2704K expGasoline -669K vs +208K expDistillates +741K vs +600K expRefinery utilization +0.9% vs +0.2% expectedProduction mbpd 13.3mbpd vs 13.3mbpd priorImplied mogas demand 9.17 mbpd vs 8.75 mbpd priorOil is in danger of falling to the lowest since Dec 18. A lower weekly close would also end a streak of two small weekly gains that had followed an eight-week losing streak. The market isn't too concerned about the Red Sea, it seems. This article was written by Adam Button at www.forexlive.com.
WTI crude oil is at the lows of the day, down $1.62 to $72.49.
The Boxing Day rally has now been completely wiped out and crude is lower on the week.
The drop in oil comes despite a bullish weekly oil inventory report that showed:
- Crude -7114K vs -2704K exp
- Gasoline -669K vs +208K exp
- Distillates +741K vs +600K exp
- Refinery utilization +0.9% vs +0.2% expected
- Production mbpd 13.3mbpd vs 13.3mbpd prior
- Implied mogas demand 9.17 mbpd vs 8.75 mbpd prior
Oil is in danger of falling to the lowest since Dec 18. A lower weekly close would also end a streak of two small weekly gains that had followed an eight-week losing streak. The market isn't too concerned about the Red Sea, it seems. This article was written by Adam Button at www.forexlive.com.
