Oil drops despite large US inventory drawWTI crude oil is at the lows of the day, down $1.62 to $72.49.
The Boxing Day rally has now been completely wiped out and crude is lower on the week.
The drop in oil comes despite a bullish weekly oil inventory report that showed:
- Crude -7114K vs -2704K exp
- Gasoline -669K vs +208K exp
- Distillates +741K vs +600K exp
- Refinery utilization +0.9% vs +0.2% expected
- Production mbpd 13.3mbpd vs 13.3mbpd prior
- Implied mogas demand 9.17 mbpd vs 8.75 mbpd prior
Oil is in danger of falling to the lowest since Dec 18. A lower weekly close would also end a streak of two small weekly gains that had followed an eight-week losing streak. The market isn't too concerned about the Red Sea, it seems.
This article was written by Adam Button at www.forexlive.com.
Source: Oil drops despite large US inventory draw (https://www.forexlive.com/news/oil-drops-despite-large-us-inventory-draw-20231228/)
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