Despite mostly bullish news, crude oil prices fell yesterday. According to a Reuters report, traders noted significant profit taking. Data from the American Petroleum Institute showed a much larger-than-expected draw in crude oil stocks (-7.4m vs. -4m expected). Gasoline and distillate stocks were only slightly higher than expected. Expectations for good EIA figures (to be announced later today) are rising as a result. In other news, the shutdown of the North Sea's Forties pipeline continues and helped Brent crude oil rise above $65 per barrel yesterday. As crude oil remains in a bull market, supply disruptions have helped the commodity this year. Our medium-term outlook based on trending indicators remains bullish.
WTI is currently trading just above $57.60. Brent crude is currently above $64.10.
Looking at US crude oil stocks, the most recent EIA figures (December 6) showed falling crude oil stocks and rising refined inventories. Crude oil inventories were lower than estimates (-5.6m vs. -3.5m expected). Gasoline stocks were up (+6.8m vs. +1.9m expected) while distillate stocks (+1.7m vs. +1.2m expected) were also up. Looking at reactions in markets, crude oil prices fell following the EIA report.