BLOOMBERG.COM
With investors focused on the question of oversupply in the oil market, a familiar pattern is emerging in the price of crude. On Wednesdays -- when the Energy Information Administration releases its latest data for U.S. production and inventories -- oil prices take a tumble. The pattern has held for the past month, with losses on a barrel of West Texas Intermediate averaging 3.2 percent, or $1.56, over the past four Wednesdays. “No Wednesday without a good fall in prices seems to be the current motto of the market,” wrote analysts at JBC Energy GmbH, after the latest EIA data showed U.S. production increased to the highest since August 2015. While stockpiles of crude fell by 2.45 million barrels to 509.1 million last week, inventories remain about 100 million barrels above the five-year average.
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With investors focused on the question of oversupply in the oil market, a familiar pattern is emerging in the price of crude. On Wednesdays -- when the Energy Information Administration releases its latest data for U.S. production and inventories -- oil prices take a tumble. The pattern has held for the past month, with losses on a barrel of West Texas Intermediate averaging 3.2 percent, or $1.56, over the past four Wednesdays. “No Wednesday without a good fall in prices seems to be the current motto of the market,” wrote analysts at JBC Energy GmbH, after the latest EIA data showed U.S. production increased to the highest since August 2015. While stockpiles of crude fell by 2.45 million barrels to 509.1 million last week, inventories remain about 100 million barrels above the five-year average.
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