It is not only the fact that the USD has strengthened of late that is causing oil prices to come down. Clearly there is a lack of demand as supply is growing.
Or, there is a ever increasing amount of supply that is coming on board. This could be from the latest efficiency from fracking and other finds in the U.S. oilfields.
The latest DOE inventory data from last Wednesday showed another bearish report. Anyway you slice it, this remains a bearish sign for oil and gas prices. That said, there is no telling how the gang in the pit will take it as we all know that commodities don’t always see things with supply/demand in mind.
Oil inventory data from the DOE: (BEARISH FOR CRUDE)
- Crude oil inventories had a draw of 0.133 mln (consensus called for a draw of 1.3 mln)
- Gasoline inventories had a build of 2.078 mln (consensus called for a build of 1.0 mln)
- Distillate inventories had a of draw of 2.279 mln (consensus called for a build of 1.2 mln)
- Change in refinery utilization at 0.7%.