We take a look at the latest developments in the oil market, including charts of all the major inventory categories.
The Department of Energy reported this morning that in the week ending May 24, U.S. crude oil inventories increased by 3 million barrels, gasoline inventories decreased by 1.5 million barrels, distillate inventories increased by 1.9 million barrels and total petroleum inventories increased by 9.7 million barrels.
Crude oil sagged after the release of the latest inventory report. The EIA said that U.S. crude inventories climbed to the highest level since it began collecting data in 1978.
Brent has formed a narrow trading range between $101 and $105 as can be seen from the chart below. We expect that the range will resolve itself to the downside given weak supply and demand fundamentals and elevated inventory levels.
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