SunSirs: Energy, EIA Crude Oil Inventory Growth is lower than the expected Oil Price Rise in API Report

On November 20, U.S. WTI crude oil futures market rose sharply to $57.11/barrel, or $1.90, while Brent crude oil futures rose sharply to $62.40/barrel, or $1.49. WTI rose 3%, Brent 2.5%. Crude oil prices fell sharply and rose sharply for two consecutive trading days, mainly due to the increase of 1.4 million barrels of crude oil storage announced by the US Energy Information Agency (EIA) on Wednesday, which is far from the increase of 6 million barrels predicted in the API report.

U.S. crude oil inventories rose 1.4 million barrels for the week ending November 15, the fourth straight week, the EIA reported on Wednesday. The move follows a report the day before by the American Petroleum Institute (API) that crude oil inventories in the US increased by about 6 million barrels last week.

Analysts previously surveyed by S & P's global Platts energy information forecast an average increase of 1.6 million barrels in U.S. crude oil inventories last week.

Analysts said the EIA's crude oil inventory data was "basically in line with expectations", and the reason for the rise in oil prices was that the increase in crude oil inventory was not as high as the API data showed.

In the view of SunSirs, the recent sharp rise and fall of crude oil prices and wide fluctuation are mainly due to the disturbance of too many short-term information factors. Including U.S. crude oil storage data, geography, OPEC + production reduction expectation, etc., in the medium and long term, many institutions predict that the downward pressure of the global economy will be greater, the expectation of slowing down crude oil demand is still the lingering shadow of the market, and the oil price will continue to be under pressure in the medium and long term due to the slow improvement of trade environment.

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