Bet against oil this week after surprise crude inventory build
Yesterday, OilPrice.com reported that "the American Petroleum Institute ( ) has estimated a large crude oil inventory draw of 5.92 million barrels for the week ending September 26—a surprise compared to analyst expectations of a 1.567-million-barrel build." This morning, the US Energy Information Administration ( EIA ) confirmed the finding of a surprise inventory build, although the EIA's number is a little lower: "U.S. commercial crude oil inventories (excluding those in the Strategic Petroleum Reserve) increased by 3.1 million barrels from the previous week." This surprise inventory build comes despite significant efforts on the part of oil companies to scale back both imports and production, both of which were down week-over-week.
There's more news for oil prices, too. Saudi Arabia is reporting its oil fields back at full production, and the US is exploring non-violent solutions to the Iran crisis, including sanctions and peace talks. Both those developments, while good for the world, are bad for oil prices. I've purchased some of the DRIP fund to profit from further declines in oil prices this week.
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