Oil slumps to five-week low

The price of US crude oil has dropped sharply following the release of weekly inventory data from the US Energy Department.

The Energy Information Administration’s weekly petroleum status report shows that US supplies of gasoline and fuel distillates are building, with inventories increasing faster last week than expected.

Gasoline inventories expanded by 6.2 million barrels, after a 0.6 million increase the week before, and distillates rose 5.8 million barrels, following a 5.0 million increase in the week prior, for the largest build in distillates in around a year.

Though refinery output remained high with utilisation running at 92.3% of capacity, the big build-up of stocks of refined products suggests this will likely ease in coming weeks, which should have an effect on crude oil inventories. Total products supplied plummeted 4.1% to a seven-month low, indicative of easing consumption. Gasoline consumption fell to 8.27 million barrels a day, the lowest level seen in a year.

The draw in crude supplies is not remarkable given the high run rates we’ve been seeing at refineries in the last few weeks; the key issue in today’s report is that the refined products are backing up because of a lack of demand, which is bearish for crude. By mid-afternoon in New York, crude oil futures for February were down more than 1% at $92.40 a barrel.

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

CFD’s zijn complexe instrumenten en brengen vanwege het hefboomeffect een hoog risico mee van snel oplopende verliezen. 79% van de retailbeleggers lijdt verlies op de handel in CFD’s met deze aanbieder.
Het is belangrijk dat u goed begrijpt hoe CFD's werken en dat u nagaat of u zich het hoge risico op verlies kunt permitteren.
CFD’s zijn complexe instrumenten en brengen vanwege het hefboomeffect een hoog risico mee van snel oplopende verliezen.