fbpx
  • Market Insights  >  Weekly Outlook

25 August 2022,06:20

Weekly Outlook

Large Crude Inventory Drop Sends Prices Up

25 August 2022, 06:20

Share on:
FacebookLinkedInTwitterShare
Share on:
FacebookLinkedInTwitterShare

On Wednesday (GMT+3) 24th August, the US crude oil inventories greatly outperformed expectations, dropping by 3.282 million barrels against an expected drop of 0.922 barrels for the week of 19 August. The Energy Information Administration also reported a drop of 0.661 million barrels against expectations for an increase of 0.58 million barrels. 

Gasoline inventories, however, fell by 0.027 million barrels against an expected drop of 1.464 million barrels – signalling a slowdown in economic activity. 

Crude oil inventories now sit at 421.7 million barrels, about 6% below the 5-year average for this time of the year. 

Post-Market

While oil prices have steadily dropped since June’s high of around $120, they have been rallying since mid-August. On Tuesday, oil surged almost 4% as Saudi Arabia revealed that they were planning to cut OPEC+ output to “support prices” should Iranian crude return to the market if its nuclear deal goes through and sanctions are lifted. The cuts were also planned in response to a forecasted drop in US inventory – which has since been revealed to be much more than expected. 

The International Monetary Fund has reported that the Middle East’s oil-producing countries are set to earn an extra $1.3 trillion due to increased energy prices resulting from the invasion of Ukraine. 

News of the US inventory increase has also boosted prices, with September contracts for WTI up 0.63% to $95.49 and Brent up 0.73% to 101.96.

The further price action of crude is now highly dependent on the outcome of the Iranian nuclear deal talks, and further news on the talks about the price cap of Russian crude. Russia is currently in talks with several Asian countries including Indonesia on possible discounts of as deep as 30%.

Investors are now advised to continue paying close attention to the upcoming annual Jackson Hole meeting, which will last three days beginning 26 August at 16:00 (GMT+3), and see the world’s leading economists and policymakers gather to discuss economic conditions and direction. Policy shifts are often signalled at this event, which is closely watched by traders. 

As a friendly reminder, do keep an eye on market changes, control your positions, and manage your risk well. 

Start trading with an edge today

Trade forex, indices, metal, and more at industry-low spreads and lightning-fast execution.

  • Start trading with deposits as low as $50 on our standard accounts.
  • Get access to 24/7 support.
  • Access hundreds of instruments, free educational tools, and some of the best promotions around.
Join Now

Latest Posts

Szybkie i łatwe otwieranie konta

Utwórz Konto na Żywo
  • 1

    Zarejestruj się

    Zarejestruj się na Live Account w PU Prime za pomocą naszego procesu bez żadnych kłopotów.

  • 2

    Fundusz

    Bez wysiłku doładuj swoje konto za pomocą szerokiego zakresu kanałów i akceptowanych walut.

  • 3

    Rozpocznij Trading

    Uzyskaj dostęp do setek instrumentów w ramach wiodących na rynku warunków handlu

Please note the Website is intended for individuals residing in jurisdictions where accessing the Website is permitted by law.

Please note that PU Prime and its affiliated entities are neither established nor operating in your home jurisdiction.

By clicking the "Acknowledge" button, you confirm that you are entering this website solely based on your initiative and not as a result of any specific marketing outreach. You wish to obtain information from this website which is provided on reverse solicitation in accordance with the laws of your home jurisdiction.

Thank You for Your Acknowledgement!

Ten en cuenta que el sitio web está destinado a personas que residen en jurisdicciones donde el acceso al sitio web está permitido por la ley.

Ten en cuenta que PU Prime y sus entidades afiliadas no están establecidas ni operan en tu jurisdicción de origen.

Al hacer clic en el botón "Aceptar", confirmas que estás ingresando a este sitio web por tu propia iniciativa y no como resultado de ningún esfuerzo de marketing específico. Deseas obtener información de este sitio web que se proporciona mediante solicitud inversa de acuerdo con las leyes de tu jurisdicción de origen.

Thank You for Your Acknowledgement!