It was a uneven session for the oil market yesterday. Initially, Brent rallied amid rising hopes of de-escalation in commerce tensions between China and the US, with talks set to start out this weekend, ING’s commodity specialists Ewa Manthey and Warren Patterson be aware.
Oil rallies, then retreats on Fed warning
“Nevertheless, the market got here underneath stress later within the day after the Federal Reserve saved rates of interest unchanged. The Fed signalled that charges will probably stay on maintain till the results of tariffs change into clearer. This boosted the USD, which added to headwinds dealing with the broader commodity markets.”
“Weekly stock information from the Power Data Administration (EIA) was much less bullish than American Petroleum Institute (API) numbers the day prior to this. EIA information confirmed that US crude oil inventories fell by 2.03m barrels during the last week vs. the 4.49m barrels decline reported by the API.”
“Nevertheless, this nonetheless leaves crude oil inventories at their lowest degree since March. Equally, crude oil shares at Cushing hit their lowest degree since March, falling by 740k barrels. For refined merchandise, gasoline inventories elevated by a marginal 188k barrels, whereas distillate shares fell by 1.12m barrels. On the demand facet, the standout was jet gas. Demand elevated by 474k b/d week on week, hitting its highest degree since December 2019. This retains the 4-week common for demand at an all-time seasonal excessive.”
