The EIA reported a large decline in total stocks with the total now 161 million barrels below the high hit in February of 2017 and only 24.9 million barrels above the five-year average. The OPEC objective of driving global inventories down to the normal or five-year average level is working for the US even as US crude oil production has increased to a record high level. With the crude oil forward curve remaining in a backwardation the trading community has continued to unwind storage trades that have been in play since last year.

For example, Cushing crude oil stocks are now down to 30 million barrels and 39.4 million barrels below the highs hit in April of 2017. With no economic incentive to store oil inventories are likely to remain in a destocking pattern going forward. On the financial front global equity markets were mixed around the world with the US markets gaining value. The Index was slightly lower with the US market higher throughout the trading session.

The EMI Index decreased by 0.03 percent with the year to date gain now at 4.2 percent. Three of the ten bourses in the Index are still in positive territory for 2018.

London is in the worst performing spot in the Index with Brazil in the top spot with a 13.2 percent gain for the year. The slightly lower value direction in global equity markets is a neutral price driver for the oil complex.