Oil Erases Losses as Stockpile Decline Signals Tighter Market Oil erased earlier losses after government data showed a decline in US stockpiles, signaling a tighter physical market. West Texas Intermediate traded above $78 a barrel as crude oil inventories fell by 1.36 million barrels, according to the Energy Information Administration. The pop shows that traders are taking the news as the first bullish indicator among a sea of bearish technicals. Oil has been on a downtrend since early April, posting losses in three of the past four weeks, with weakness not just in timespreads but in processing margins too. That decline has come as much of the geopolitical premium from tensions in the Middle East has unwound, bringing traders’ focus back to a cooling market. An American Petroleum Institute estimate on Tuesday had predicted US stockpile gains, according to people familiar with the matter. “The EIA’s more reliable crude oil storage numbers countered the API’s steep build, which is tripping some shorts into covering positions that were sold in late yesterday’s and this mornings trade,” said Dennis Kissler, senior vice president for trading at BOK Financial Securities. A stronger dollar is an added headwind as the commodity becomes more expensive for many investors. The US currency headed for a third day of gains, according to a Bloomberg gauge, while oil’s breach below its 100-day moving average is also exacerbating the latest bout of price weakness. The Organization of the Petroleum Exporting Countries is due to meet next month to assess supply policy after implementing production cuts over the first half of the year to support prices. Most traders expect that the curbs will be extended, possibly to the year-end, according to a Bloomberg survey. Michael PiccoiniStrategic Planning, Leadership & Analysis Professional with a background in healthcare, manufacturing and retail. I have a strong understanding of the complex world of revenue Management and how to make it more relevant, understandable, and actionable for executive leadership across all levels of an organization. My career has spanned several years at UnitedHealth Group, Inc. I obtained my B. Comm from the University of Windsor and MBA from Wayne State University canambullion.com « Previous Article Next Article » Share This Article Choose Your Platform: Facebook Twitter Google Plus Linkedin Related Posts Crude Prices Dip Below $75 Amid Ceasefire Talks Between Israel and Hamas READ MORE Oil Prices Waver as U.S. Stockpile Growth Meets OPEC+ Supply Cut Speculation READ MORE Gold Set for a Great 2024, with Silver to Shine Even Brighter: UBS Insights READ MORE Carlsbad woman, 70, gave scam artists $1 million-plus in gold, precious metals: DA READ MORE Add a Comment Cancel replyYour email address will not be published. Required fields are marked *Name * Email * Save my name, email, and website in this browser for the next time I comment. Comment