Oil prices jumped to a five month high today on a larger than expected inventory drop. Both contracts had traded up as much as 4% earlier on in the session before trading down later in the day. Crude stocks were down 7.37 MM/bbls, vs a forecasted draw of -2.37MM/bbls.
Oil prices traded up today on hopes of new US stimulus and progress against the virus. Brent closed at its highest level today since early March while WTI was also trading at its highest level since March earlier in the day.
“The industrial sector is picking back up and that portends well for demand going forward,” said John Kilduff, partner at Again Capital LLC in New York.
Oil prices rose today after initially trading down, posting its third straight month of gains. Prices benefited from a report that US output cuts in May were the largest on record.
Oil prices traded down today after crude stocks had their biggest draw down since December yesterday.
Oil prices edged up slightly after a sharp drop in US crude inventories, offsetting a decline in net imports of 1mm/bpd. This was the largest draw down since December, which Reuters indicates is likely a result of the OPEC supply cuts being “realized”.
Oil prices fell today as US lawmakers battle out a fresh stimulus/aid package. “There’s concern with the stimulus out of Washington, which is critical to the oil complex and to supporting demand, especially for gasoline,”
Oil prices rose for the day after initially falling as much as 2% during the session. A weaker US dollar continues to help foreign commodity holders and support oil prices.
Oil prices moved slightly higher on Friday supported by economic data from Europe, but gains were limited as tensions between the United States and China flared.
The dollar is trading at its lowest level (against a basket of currencies) since 2018 making dollar priced assets cheaper for foreign holders. US virus cases passed 4 million (up more than 1 million in just three weeks) with Florida and California reporting record death counts today.