Please attribute the following commentary to Jeffrey Halley, senior market analyst at OANDA:
Another week another surprise drawdown in crude inventories by the U.S. Energy Information Administration.(EIA) This time -3 million barrels vs and expected increase of 2.6 million and confirming the surprise drawdown yesterday by the API. Although crude in storage remains at record highs this is the 3rd week of unexpected drawdowns in a row.
Crude needed no more encouragement leaping 2% to new highs before both Brent and WTI settled 1% up on the day. This morning the futures have WTI at $49.35 eyeing the psychological $50.00 and will no doubt have the shale drillers getting ready to dust of some mothballed rigs. Brent sits at $51.10 with $52.40 the six monthly high in its sights.
For direct comment, please contact:
Jeffrey Halley Business Development and Market Strategist, OANDA Asia Pacific
Representative No. HJD300377750