oil inventory data Oil markets are once again in the doldrums amid fears of a persistent oversupply and concerns over the slow drawdown in U.S. inventories, but oil experts say those concerns are overdone.
“We are at the start of the rebalancing, we haven’t finished it yet, whereas the market almost priced in that everything was done but now it’s gone almost the other way, saying that no rebalancing has been done whatsoever,” Amrita Sen, the co-founder and chief oil analyst at Energy Aspects,
Oil prices remained subdued on Wednesday with U.S. crude below $40 per barrel and Brent under $42 a barrel amid continued concerns over an oversupply of oil, although prices did receive some support from a weaker dollar, Reuters reported.
Oil markets on Wednesday are focused on the U.S. Energy Information Administration’s usual weekly look at oil inventories with the data due at 10:30 a.m. ET. Figures from industry group API late Tuesday showed an in-line stockpile reduction of 1.3 million barrels.
Markets have become somewhat obsessed with analyzing the figures for signs of a rebalancing in supply and demand.
Last week, U.S. crude futures fell more than 2 percent after the EIA reported an unexpected rise in crude and gasoline inventories. It said last Wednesday that U.S. commercial crude in storage rose by 1.7 million barrels to a total of 521.1 million barrels in the week through July 22. Analysts had expected a draw of 2.3 million barrels.
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