Crude Pares Losses after EIA Report shows a surprise build

The EIA crude inventory report delivered another surprising build of 2.21 million barrels last week.  Expectations were for a draw of 1 million barrels, with a wide range of estimates of a 3.7 million draw to a 3.0 million build.  Oil was already sharply lower going into the data and eventually extended losses.  Cushing accounted for 2.096 million barrels of the total build, confirming the API’s rise which saw the strongest gains since February.  The rise in Cushing is mainly being attributed to the Midwest flooding that disrupted many pipelines and refineries.

West Texas Intermediate Crude is tentatively finding support around the $52.00 a barrel level. The Canadian dollar remains little changed to the greenback on the day.

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Ed Moya

Ed Moya

Senior Market Analyst, The Americas at OANDA
With more than 20 years’ trading experience, Ed Moya is a senior market analyst with OANDA, producing up-to-the-minute intermarket analysis, coverage of geopolitical events, central bank policies and market reaction to corporate news. His particular expertise lies across a wide range of asset classes including FX, commodities, fixed income, stocks and cryptocurrencies. Over the course of his career, Ed has worked with some of the leading forex brokerages, research teams and news departments on Wall Street including Global Forex Trading, FX Solutions and Trading Advantage. Most recently he worked with TradeTheNews.com, where he provided market analysis on economic data and corporate news. Based in New York, Ed is a regular guest on several major financial television networks including CNBC, Bloomberg TV, Yahoo! Finance Live, Fox Business and Sky TV. His views are trusted by the world’s most renowned global newswires including Reuters, Bloomberg and the Associated Press, and he is regularly quoted in leading publications such as MSN, MarketWatch, Forbes, Breitbart, The New York Times and The Wall Street Journal. Ed holds a BA in Economics from Rutgers University.
Ed Moya