Are Lower Oil Prices Here to Stay？

EIA Report Smokes Expectations—What It Means for Oil

Yesterday, I mentioned that today’s EIA Crude Oil Inventories report would be the key to understanding oil’s next move. Well, the numbers are in… and they’re big. The Energy Information Administration (EIA) expected a 2M surplus, but they got a whopping 5.8M surplus. That’s nearly triple what they were anticipating! It’s a massive build-up in supply, and it matches what we saw in the API crude stocks report last night, which also came in way above expectations. To put it in perspective, the American Petroleum Institute (API) expected a 1.95M surplus and saw a 10.9M surplus — over five times bigger than expected. So what’s the takeaway? On one hand, this data suggests there’s a lot more oil on the market than people thought. If there’s too much supply and not enough demand, prices usually drop. But that’s not the whole story… The EIA also expected a draw of -1.5M barrels on gasoline but saw a much larger -6.3M draw. That’s a sign that gasoline demand is stronger than anticipated. It’s a bit of a mixed message. The massive gasoline draw contradicts the EIA’s short-term outlook released yesterday, where they downgraded demand projections for developed economies. So, while the oil surplus seems to indicate oversupply, the gasoline data shows people are still driving and consuming fuel at higher rates. This may be a one-off due to recent hurricanes, which could explain the uptick in gasoline demand. Either way, it’s a situation that I’ll be watching. With the market still digesting all of this, I’ll be keeping a close eye on oil prices over the next few days to see if the data starts pulling them in one direction or the other. — Geof Smith

Yesterday, I mentioned that today’s EIA Crude Oil Inventories report would be the key to understanding oil’s next move.   Well, the numbers are in… and they’re big.   The Energy Information Administration (EIA) expected a 2M surplus, but they got a whopping 5.8M surplus.   That’s nearly triple what they were anticipating!   It’s a massive build-up in supply, and it matches what we saw in the API crude stocks report last night, which also came in way above expectations.   To put it in perspective, the American Petroleum Institute (API) expected a 1.95M surplus and saw a 10.9M surplus — over five times bigger than expected.   So what’s the takeaway?   On one hand, this data suggests there’s a lot more oil on the market than people thought. If there’s too much supply and not enough demand, prices usually drop.   But that’s not the whole story…   The EIA also expected a draw of -1.5M barrels on gasoline but saw a much larger -6.3M draw. That’s a sign that gasoline demand is stronger than anticipated.   It’s a bit of a mixed message.   The massive gasoline draw contradicts the EIA’s short-term outlook released yesterday, where they downgraded demand projections for developed economies.   So, while the oil surplus seems to indicate oversupply, the gasoline data shows people are still driving and consuming fuel at higher rates.   This may be a one-off due to recent hurricanes, which could explain the uptick in gasoline demand.   Either way, it’s a situation that I’ll be watching.   With the market still digesting all of this, I’ll be keeping a close eye on oil prices over the next few days to see if the data starts pulling them in one direction or the other.   — Geof Smith

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ABOUT US:  We believe that the opportunity for financial literacy and freedom belongs to all people, not just those who already have years of investing experience. Prosperity Pub provides an array of educational services and products that will help you navigate the markets and become a better investor. Trading is made simple through our online forum full of trading techniques to give you the best tools to kick-start your investing journey. We offer collaborative webinars and training; we love to teach. No matter the opportunity, we bring together a strong community of like-minded traders to focus on analyzing market news as it’s presented each day. DISCLAIMER: FOR INFORMATION PURPOSES ONLY. The materials presented from Prosperity Pub are for your informational purposes only. Neither Prosperity Pub nor its employees offer investment, legal or tax advice of any kind, and the analysis displayed with various tools does not constitute investment, legal or tax advice and should not be interpreted as such. Using the data and analysis contained in the materials for reasons other than the informational purposes intended is at the user’s own risk. DISCLAIMER: TRADE AT YOUR OWN RISK; TRADING INVOLVES RISK OF LOSS; SEEK PROFESSIONAL ADVICE. Prosperity Pub is not responsible for any losses that may occur from transactions effected based upon information or analysis contained in the presented. To the extent that you make use of the concepts with the presentation material, you are solely responsible for the applicable trading or investment decision. Trading activity, including options transactions, can involve the risk of loss, so use caution when entering any option transaction. You trade at your own risk, and it is recommended you consult with a financial advisor for investment, legal or tax advice relating to options transactions.  Please visit https://prosperitypub.com/terms-conditions/ for our full Terms and Conditions. Unsubscribe This email was sent to phanxuanhoa60.trade1357@blogger.com by Prosperity Pub 101 Marketside Ave, Suite 404 PMB 318, Ponte Vedra, Florida 32081, United States Prosperity Pub