FRONT MONTH BRENT's early dip to $54.44 (currently back up to circa $54.80) brought thoughts of the 2-month rising trendline into play a break of which, TECHNICAL ANALYSIS suggests, would lead to a deeper correction.
The move back under $55 (still well within the post-production deal range) was instigated by Tuesday's US API inventory data and quells talk of front-end BACKWARDATION for the time being.
The official DoE numbers at 15:30GMT will not just be watched for oil inventories. As we mentioned Tuesday, GASOLINE stocks (at close to record peaks even on a seasonal basis) are also under scrutiny, in particular implied demand (measured by total motor gasoline supplied). The 4-week moving average of the latter plummeted to 8.2mn brls last week a level not seen since 2012. If this sort of demand level continues, the sharpness of the fall would imply the US consumer isn't in the best of health � a negative for the US economy and oil demand.
If you have questions about how Informa Financial Intelligence can assist your business, please fill out the form below and we'll get back to you shortly.
If you prefer to get in touch by phone, please refer to the About section of our website for a list of our offices and contact details.
Would you like to request sample data or analysis from Informa Financial Intelligence?