Supply disruptions continue to haunt crude oil. Evacuations in Alberta, Canada have resumed as fires rage and head north nearing the major production areas of the Province. An electric power plant had to be shut down and companies were proceeding with orderly shutdowns of production facilities that are in danger from the fires. Nigeria continues to be plagued by sabotage from militants who claim they want to free the oil rich Niger Delta region from the corruption of the Nigerian government. Crude Oil rallied once again to a new high (Tuesday, May 17), reaching 48.42 and settled at 48.31.
Crude then rallied into the API report, making a new high for the day after settlement at 48.76. The API report showed a smaller drawdown in inventory than expected, showing a reduction of 1.1 million barrels as expectations were for a larger drawdown of 3.5 million barrels. Cushing inventories came in at a build of 508,000 barrels which is smaller than the 1.1 million barrel build expected. Gasoline inventories declined by 1.9 million barrels, which is larger than the 1 million barrels expected. Crude Oil ended the day at 48.59, showing little reaction to the report. Tomorrow’s EIA report is expected to show a decline of 3.5 million barrels in Crude Oil and gasoline to decline by 1.2 million barrels.
CLH16
- High - 48.76
- Low - 47.53
- Last - 48.59
Daily Pivots for 5/18/16:
- R2 49.52
- R1 49.06
- PIVOT 48.29
- S1 47.83
- S2 47.06