Cushing Crude Oil Inventories Fell for the Fifth Time in 6 Weeks
Cushing crude oil inventories
A market survey estimated that Cushing crude oil inventories could have fallen between May 19, 2017, and May 26, 2017. Cushing crude oil inventories fell for the fifth time in the last six weeks. A fall in inventories at Cushing could help crude oil (VDE) (XES) (USO) prices.
US crude oil prices are near a one-month high. The rollercoaster ride in crude oil prices could impact crude oil producers’ earnings like ExxonMobil (XOM), Swift Energy (SFY), Hess (HES), PDC Energy (PDCE), and Denbury Resources (DNR).
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EIA’s crude oil inventory report
The EIA (U.S. Energy Information Administration) will release its crude oil inventory report at 10:30 AM EST on June 1, 2017. The report will be for the week ending May 26, 2017.
In its previous report, the EIA reported that Cushing crude oil inventories fell by 0.74 MMbbls (million barrels) to 65.5 MMbbls for the week ending May 19, 2017—compared to the previous week. Inventories have fallen 1.1% week-over-week and 3% year-over-year.
Crude oil (FENY) (UCO) (PXI) prices and inventories have an inverse relationship. Cushing crude oil inventories hit 69.4 MMbbls in the week ending April 7, 2017—the highest level ever. Inventories have fallen 5.5% from the highest level. The fall in inventories could help crude oil prices.
Crude oil prices
US crude oil prices’ moving averages, OPEC’s meeting, and fundamental drivers discussed in the previous parts suggest that prices could be on a rollercoaster ride in 2017.