Weekly oil supply data from the EIA

  • Prior was -2342K
  • Gasoline +452K vs +600K exp
  • Distillates -780K vs +950K exp
  • Cushing +1110K vs -500K exp
  • Production 8.515mbpd vs 8.494mbpd prior
  • Production up 0.2% w/w
  • Production -9.5% y/y
  • Imports +3.7% w/w

The oil gain evaporated on the headlines and WTI is now trading down 30-cents to $42.62 from $43.15 beforehand. It's not looking good for oil.

On the production side, the idea was that US production would fall below 8 mbpd this year but that's looking in doubt.

Goldman Sachs' commodity head is on Bloomberg worried about Asian demand. He said that's offset partly by Nigerian supply. Overall, he said oil is trading largely on the US dollar. Fundamentally, he said the numbers aren't pointing in any particular direction.