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OilMonster
Crude Oil September 16, 2020 03:00:20 AM

Crude Oil Price Rises After a Surprise Drop of US Inventories

Anil
Mathews
OilMonster Author
That was a surprise because analysts were expecting the data to show that inventories rose by more than 2 million barrels.
Crude Oil Price Rises After a Surprise Drop of US Inventories

OILMONSTER.COM- The price of crude oil rose in overnight trading as the market reacted to the US inventories data from the American Petroleum Institute (API). The data showed that inventories declined by more than 9 million barrels. That was a surprise because analysts were expecting the data to show that inventories rose by more than 2 million barrels. The data came a day after the International Energy Institute (API) reduced its oil demand forecast for the year by more than 8 million barrels. OPEC also reduced the forecast on Monday. Later today, we will receive the official inventories data by the Energy Information Administration.

The US dollar is down for the fourth day as traders wait for the upcoming Fed interest rate decision. This week’s meeting comes at a time when data from the US has been relatively strong. Early this month, data showed that manufacturing and services PMIs remained above 50.0 in August. In the same month, the unemployment rate declined to 8.4% while inflation rose slightly. Therefore, analysts don’t expect the Federal Open Market Committee (FOMC) to change the current policy. Indeed, most economists polled by CNBC said that they expect the bank will leave rates unchanged until 2023.

The Japanese yen strengthened against the dollar as traders reacted to relatively strong economic data from Japan. The data showed that the country’s exports fell by 14.8% in August, which was an improvement from the previous decline of 19.2%. In the same months, imports declined by more than 20.8% after falling by more than 22% in July. That led to a trade surplus of more than 248 billion yen. We will receive inflation data from the UK and Canada today.

Courtesy: www.fxstreet.com

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