"Nasdaq Stock Market" declare : Oil Prices Plunge And Bounce Back After EIA Reports Massive Crude Build

The Energy Information Administration sunk oil markets deeper into despair reporting a build of 13.8 million barrels for commercial crude oil inventories in the U.S. Total commercial inventories are at 508.6 million barrels, above the upper limit for the season. EIA said that in the week to February 3 refineries processed 15.9 million barrels of crude daily, operating at 87.7 percent of capacity. Gasoline production averaged 9.8 million barrels a day – a weekly increase – while inventories fell by 900,000 barrels. A day earlier, the American Petroleum Institute reported the second-largest weekly inventory build ever in the history of records, at 14.227 million barrels, versus expectations of a 2.38-million-barrel increase. In the previous week, gasoline inventories went up by 3.9 million barrels.


referring to Following a selloff in the first two sessions this week, crude oil prices are likely to extend their rally for the second consecutive day in on Thursday. Oil prices are likely to swing between minor gains and losses in the coming days. Therefore, crude oil prices have a limited upside potential despite a surprise draw in gasoline stocks that had offered a little support to prices. Nevertheless, oil prices also have a very limited downside potential considering the production cuts of 1.8 million barrels from 24 countries. Oil prices soared despite the Energy Information Administration reporting a fifth successive weekly build in U.S. crude stocks, supported by the surprise decline in gasoline inventories.


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Gasoline Futures Are Supporting Crude Oil Prices

Oil Prices Recover Due to Gasoline Demand and Short Covering PART 5 OF 7Gasoline Futures Are Supporting Crude Oil PricesUS gasoline futuresMarch gasoline futures rose 4.4% to $1.55 per gallon on February 8, 2017. In the next part of this series, we'll take a look at US gasoline inventories and their impact on gasoline and oil prices. Gasoline prices fell due to falling crude oil (USO) (XOP) (RYE) prices and strong gasoline production between 2014 and 2016, as you can see in the above chart. Bullish momentum in gasoline futures supported crude oil (PXI) (USL) (IXC) prices on February 8, 2017. As of February 8, 2017, gasoline active futures rose 54% from their lows in February 2016 due to the increase in gasoline demand and recovery in crude oil prices in early 2016.




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collected by :Jack Luxor