The predicted rise in US stock levels have dragged down markets further this morning, continuing losses and putting prices ever closer to the $30 mark again.
Data from U.S. industry group API predicts crude stocks rose by 8.7 million barrels in the week to May 22, compared with analysts’ expectations for a draw of 1.9 million barrels.
Gasoline stocks are predicted to rise by 1.1 million barrels, more than 10 times the build analysts had expected, and stocks of diesel and heating oil by 6.9 million barrels, nearly four times as much as anticipated.
After a couple of weeks of draws this news comes as a surprise to the market, but we all know that the API predictions do not always translate into the same confirmations by the EIA.
The EIA will release the real data at 16:00 today, a day late due to the public holiday on Monday. Apparently Russia and Saudi Arabia agreed to closely coordinate on the OPEC+ output cuts deal, two weeks ahead of a crucial meeting of the group and after earlier reports that Moscow was determined to start easing curtailments in July. (FIS)