Investing.com – US crude oil stocks fell less than last week's forecast, with an implicit lack of refinery activity, prompting some analysts to question whether Vest Tekas Intermediate oil will be able to withstand over $ 55.
The Energy Information Directorate said in its regular weekly report that it had decreased by only 0.28 million barrels in the week to May 24.
This was compared with the forecasts for the withdrawal of stocks of 0.86 million barrels after the construction of 4.74 million barrels in the previous week.
The Environmental Impact Assessment also showed that it rose by 2.20 million barrels, compared with expectations of 0.53 million barrels, while on the positive side it fell by 1.62 million barrels, compared with forecasts of 0, 56 million barrels.
The data was postponed for one day this week due to the holidays on Monday.
continued losing after launch for sale, falling 1.8% to $ 57.73 per barrel by 11:31 AM ET (15:31 GMT), compared to $ 58.71 before publication.
London's turnover lost 2.6% to $ 66.08 per barrel, compared to $ 67.27 before its release.
Investment analyst Barani Krishnan said the price is not surprising given the "ultimate bearish data set" that raises the question of where the refineries are.
"While the refinery has moved from the previous week to the norm for the season above 90%, less than expected it is still indicative that refineries hinder the low boundaries of the cracks we now have for gas," he said.
"If (refineries) do not increase their costs by next week, I think that the VTI will have serious problems with over $ 55, regardless of whether OPEC continues to cut or not," Krishnan concluded.
Oil was under pressure this week because trade tensions between the US and China are escalating. The conflict that exists between the two largest world economies is at risk of falling from global growth, which implies a negative impact on demand for oil.
Contrary to the slowdown in demand, the offer is sharpened due to a reduction in production under the leadership of OPEC, US sanctions for Iran and Venezuela, and cuts from Nigeria to Russia.
The president of the energy and geopolitics company Transversal Consulting and associate Investing.com noted that 2019 was good for oil traders because prices have been rising steadily since the beginning of the year.
"However, the pendent of good news / bad news can finally be much stronger on the negative side, as signs of global economic slowdown become stronger," Wald warned.
But, faced with increasing supply, Vald postulates that "conflict signals mean that surprises can continue very well."
Fusion Media or anyone involved in Fusion Media will accept any liability for loss or damage as a result of reliance on information, including data, quotes, charts and buy / sell signals contained on this website. Please be fully informed about the risks and costs associated with trading in financial markets, as this is one of the most risky forms of investment.