- Oil traders and analysts are expecting large drawdowns of crude oil from storage tanks across the U.S. in the coming weeks, Reuters reports.
- A reduction would show the market is finally reversing course after years of stock builds that left a worldwide overhang of 500M barrels of crude oil and refined products that punished prices during the last two years.
- Supplies have remained stubbornly high for months, but traders say seasonally unusual spring drawdowns in the U.S., record refining runs, and big exports to Asia and Latin America signal potentially sharp declines in crude stocks, according to the report.
- Some traders expect draws of as much as 10M bbl/week soon, while others see 3M-4M per week; U.S. crude stocks peaked at 533M barrels in March and were at 516M as of last week, according to the U.S. EIA.
- ETFs: USO, OIL, UCO, SCO, BNO, DBO, DTO, USL, DNO, OLO, SZO, OLEM
- Now read: Get Ready For The Coming Golden Age
Original article