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Crude Oil: Surprising Increase In US Inventories

By Sunshine Profits (Sébastien Bischeri)CommoditiesJan 21, 2022 09:37AM ET
www.investing.com/analysis/crude-oil-surprising-increase-in-us-inventories-200615508
Crude Oil: Surprising Increase In US Inventories
By Sunshine Profits (Sébastien Bischeri)   |  Jan 21, 2022 09:37AM ET
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Recently, oil prices hit their highest levels in 7 years. Despite this, we are witnessing a surprising increase in US inventories. Why is that?

Energy Market Updates

Crude oil retreated this morning in the pre-US trading session, after another volatile day on Thursday. It was followed by the weekly release of US inventory figures that surprised the market with an increase in stocks published by the Energy Information Administration (EIA). Meanwhile, market participants were expecting a drop close to 1 million barrels, which implies a slowdown in demand.

US Crude Oil Inventories.
US Crude Oil Inventories.

This imbalance has led to soaring prices for petroleum products and distillates, which will add pressure on households and businesses already struggling with higher levels of inflation. Also, as I mentioned in more detail on Wednesday, there are also geopolitical tensions in various regions carrying some uncertainty, which is an additional turbine to propel oil prices.

Crude Oil Inventories 1-Month.
Crude Oil Inventories 1-Month.

RBOB Gasoline Futures Daily Chart.
RBOB Gasoline Futures Daily Chart.

Crude Oil Futures Daily Chart.
Crude Oil Futures Daily Chart.

Do you think that black gold will be worth three figures ($100) anytime soon? In the first quarter of 2022, maybe? Let us know in the comments.

Crude Oil: Surprising Increase In US Inventories
 

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Crude Oil: Surprising Increase In US Inventories

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Comments (3)
Jeff Page
Jeff Page Jan 25, 2022 3:55AM ET
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Puts closed. +125%
Jeff Page
Jeff Page Jan 23, 2022 4:52PM ET
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I have puts on USO that will expire Friday. My thoughts are more towards an uptick in the dxy vs. Ukraine issues. The 10 year comes into play. I'm protecting profits at pennies on the dollar. Rig count is anemic so I'm thinking mid April-mid May tapping triple digits assuming the dollar stays as is. What other commodity is catching bids for cash? Who's raising cash.
Bharat Vyas
Bharat Vyas Jan 21, 2022 1:11PM ET
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$100 will definitely come this year. Summer looks most probably May-July. World economy is not fully operating and high oil prices are not ideal for 2022. 2023 seems like more stable scenario for consistent 3 digit oil prices.
 
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