Oil climbs ahead of US weekly inventory report

There are signs of cyclical weakening in the global economy but OPEC+ appears to have countered it by keeping production curtailed. US producers also haven’t rushed to fill the gap as they will have to contend with OPEC’s plan to slowly re-introduce barrels in the year ahead.

That’s led to an impressive climb in oil prices, which are trading at highest since April 30.

Up next is the weekly oil inventory report from the EIA at 11 am ET. It’s delayed to Thursday this week because of yesterday’s US holiday.

The consensus is:

• Crude -2200K
• Gasoline +620K
• Distillates +261K

Tuesday’s API reading was surprisingly bearish, though the market has shaken it off:

• +2264K
• Gasoline -1077K
• Distillates +538K

There have been some quirks in the report lately, including large adjustment factors and imports.

WTI crude oil was last up 73-cents to $82.27 with brent trading at $85.83.

This article was written by Adam Button at www.forexlive.com.