29 June 2016 at 14:11 GMT
- Key resistance is once again at $50/b
- Oil inventories expected to fall by 2.5m barrels
- Keep an eye on weekly production estimates
These storage facilities should be somewhat emptier. Photo: iStock
By Ole Hansen
The Brexit shock last Friday triggered risk reduction across most asset classes including crude oil with WTI tumbling 7.5% up until Monday. Since then a weaker dollar and a general recovery have seen traders once again turn their attention to oil's own fundamentals, not least the weekly inventory report from the EIA.
After managing to hold $45.83/b and thereby creating a double bottom in the market WTI crude has recovered strongly with key resistance once again found at $50/barrel.
US oil inventories probably fell in the region of 2.5 million barrels last week according to a Bloomberg survey. Other data to look out for are the weekly production estimates which have seen an almost continuous decline for the past five months.
Gasoline demand and inventories combined with refinery activity make up the other key component of the report.
In this interview today from the Bloomberg's Oil Buyers Guide
i set out some of my thoughts about oil in the aftermath of Brexit and where I see it go next.
The EIA report is due 1420 GMT. Click here
to see main features.
Comments about the inventory data will be posted below once released.
– Edited by Clare MacCarthy