Looking at the weekly EIA oil inventory data showed a large drawdown of crude oil stocks. Gasoline toys fall. Distillates rise modestly:
- Crude oil inventories -7.863M versus estimate drawdown of -2.942M
- Distillates, build of 0.372M vs expected drawdown of -1.072M
- Gasoline drawdown -1.548M vs estimate drawdown of -2.096M
- Cushing drawdown of -1.604M vs a drawdown of -1.702M last week.
Despite the drawdown, crude oil is trading lower on the day by $-3.80 at $100.30. The low price extended to $99.45. The high price is at $104.45.
Perhaps helping is that the private data released late yesterday showed crude oil stocks showing a greater -9.1 million barrel drawdown. Gasoline inventories were also much lower with a decline -5.8 million reported.
Technically, the price has dipped back below the 200 hour moving average at $100.57. Stay below that moving average level keeps the sellers more in control.
This article was written by Greg Michalowski at investinglive.com.
