Morning Market Overview

In the pre-inventory report release oil prices put in a mixed trading session with all the oil commodities trading either side of unchanged except for RBOB gasoline which increased by close to 1 percent on the day.

The International Energy Agency (IEA) released their monthly oil forecast which was overall bearish as was the OPEC and EIA monthly oil forecast. Market participants are starting to refocus their attention back to the fundamental snapshots and less on the externals.

Tuesday the US dollar index declined modestly while equities were higher both positive price drivers for the oil complex, but oil prices barely responded to the external moves.

At least for now the short and medium-term fundamentals drove the oil market sentiment with some analysts now starting to believe that the inventory destocking pattern that has been in play for about a year could be coming to a transition point with inventories potentially building as non-OPEC supply is rising at a very strong rate. In the afternoon the API started the weekly inventory report cycle with a bearish inventory snapshot.

Crude oil, gasoline and distillate fuel stocks all build more than the expectations. The total combined inventories of crude oil and products were strongly higher on the week. Overall the market moved modestly lower after the report was issued.