Oil prices down on US inventory build

2025-01-09
Summary:

Oil prices fell on Thursday, extending losses due to large US fuel inventory builds, but concerns over tighter OPEC+ supplies limited the decline.

Oil prices fell on Thursday, extending losses from the previous day, pressured by large builds in US fuel inventories last week, though concerns over tighter supplies from OPEC+ capped the decline.

Crude Oil Facilities

Gasoline stocks rose by 6.3 million barrels last week, the EIA said, well above analyst forecast of a 1.5 million-barrel gain. Crude inventories fell by 959,000 barrels, compared with expectations for a 184,000-barrel drop.


OPEC's crude output fell in December after two months of increase, a Reuters survey showed. Field maintenance in the United Arab Emirates offset a Nigerian output hike and gains elsewhere in the group.


Oil has had a strong start to 2025 following a disappointing year, but many analysts continue to warn of a glut this year with stalling Chinese demand and non-OPEC+ output increase.


WTI's prompt spread retreated from a 3-month high, indicating optimism was fading. Hoverer, Saudi Arabia hiked oil prices to Asian customers earlier this week, a vote of confidence for crude demand.


Trump on Monday denied a Washington Post report that said his aides were exploring tariff plans that would only cover critical imports, deepening uncertainty among business leaders about future economic policies.

XTIUSD

WTI crude broke out of its three-month range, but it lost momentum near 200 SMA. It is critical to hold above the ascending trendline, otherwise we could see another leg lower.


Disclaimer: This material is for general information purposes only and is not intended as (and should not be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by EBC or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.

March ADP  - Job growth far below expectations

March ADP  - Job growth far below expectations

February saw just 77,000 jobs added, far below the 146,000 forecast, marking the smallest gain since July amid policy uncertainty.

2025-04-02
​Gold holds ground with tariffs in view

​Gold holds ground with tariffs in view

Gold traded above $3,100 on Tuesday as tariff uncertainty fueled safe-haven demand, boosting inflation concerns and economic growth risks.

2025-04-02
​Loonie muted but bears fled positions

​Loonie muted but bears fled positions

The Canadian dollar rose Tuesday as investors grew cautious before US tariffs. Oil prices surged amid fears of more sanctions on Russia and Iran.

2025-04-01