The Petroleum Status Report is better-than-expected. The EIA reported a smaller-than-consensus crude oil inventory, firming demand and continued US supply decline, strategists at TD Securities brief.
Key quotes
“The EIA reported a smaller-than-consensus crude oil inventory build of 8.99 million bbl vs an 11.9 million expected increase.”
“With North American demand starting to firm as things gradually open up, and global oil production dropping at a rapid pace starting in May, the currently surging inventories will accumulate at a slower pace.”
“WTI prices should trend into the $30s as Q3 unfolds. For now, June WTI rallied over 20% to $15.10/b and may rally another $2.00 or so in the near-term.”
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