Changes in inventory levels
On April 3, the EIA (U.S. Energy Information Administration) is scheduled to announce last week’s US crude oil inventory data. Any rise up to 7.9 MMbbls (million barrels) would keep the inventories spread in the negative territory. A fall of more than 3.7 MMbbls would help the inventories spread to expand into the negative territory. A Reuters poll suggests a fall of 1.6 MMbbls in oil inventories. If the EIA data are in line with the poll, then the inventories spread will remain unchanged.
Oil inventories and their five-year average
In the week ending March 22, US crude oil inventories were 2% lower than their five-year average—the same as the previous week. Oil prices and the inventories spread usually move inversely. If the inventories spread expands more into the negative territory, it could boost oil prices in the coming weeks. The inventories spread is the difference between oil inventories and their five-year average.
Oil prices and energy stocks
Since the EIA released its inventory data on March 27, US crude oil May futures have risen 3.7%. On March 27–April 1, oil-weighted stocks Whiting Petroleum (WLL), California Resources (CRC), and Denbury Resources (DNR) rose 5.9%, 6.8%, and 8.1%, respectively, and outperformed their peers. The inventories spread in the red territory might have supported oil prices.
Major US indexes rose on April 1. Strong economic data from the US and China boosted investors’ sentiment.
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As of 4:40 AM Eastern Time today, US crude oil active futures were at $51.83, ~4% below their closing level in the previous week. If US crude oil prices stay at those levels today, they'll mark their third week of decline in five weeks.
Amazon is discontinuing its Amazon Restaurants service, which has been delivering food for restaurants in parts of the United States. Amazon Restaurants launched in the United States in 2015 and entered the British market the following year. However, it met strong opposition in the British market.