Crude oil is up more than 2% ahead of the US Energy Agency report

Mohammed Abdelkhalik
September 16, 2020

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Crude oil remained higher than 2.0% on Wednesday to extend its profits for the second day, registering the highest level in about a week, after a decline in commercial stocks in the United States, according to preliminary data from the American Petroleum Institute, and dealers are waiting for Later today, official data included in the weekly report of the US Energy Agency.

US crude oil rose 2.6% to $ 39.39, from an opening level of $ 38.39, and its lowest level at $ 38.38.

At yesterday’s settlement, US crude oil rose by 2.9%, after strong data on industrial production in China, the world’s largest oil importer.

crude oil

In preliminary data, API announced yesterday a decline in commercial stocks in the country by about 9.4 million barrels during 7 days ending September 11, in the seventh weekly decline in the last two months, contrary to experts’ expecting of a rise of about 1.6 million barrels.

According to that data, the total commercial inventories in the United States decreased to about 496.6 million barrels, which is the lowest since the ending April 10, in a positive sign of the acceleration of withdrawal levels in the largest oil consumer in the world.

Later today, dealers awaited data on commercial stocks and production levels, in the weekly report of the US Energy Agency, and expectations indicate that stocks will rise by about 2.1 million barrels.

As for US producing, it increased the previous week by about 300 thousand barrels per day, bringing the total to 10.0 million barrels per day, with the start of the turning wheel in the Gulf of Mexico after the end of the wave of hurricanes and storms, which hit the coast of the United States recently and stopped production of about 1.1 million barrels per day.

Author Mohammed Abdelkhalik

Professional Trader and Analyst, economist in Financial and Forex market since 2004.holds an MBA from the American University in Egypt. Mohammed works as an economic writer and technical & fundamental analyst for many international Forex and financial trading companies in both English and Arabic on a daily basis.