On Wednesday investors throughout the world observed how oil prices went up in volatile trade ahead of the major US supply data. However, the global oversupply of crude oil keeps weighing on the market.
Late Tuesday the US industry group, the American Petroleum Institute informed the financial world that last week American crude stockpiles rose by 3.8 million barrels. That’s evidently less than the gains of the previous week. On Wednesday, the official data is expected to be released by the Energy Information Administration. According to the recent survey of analysts, conducted by the Wall Street Journal, there should be a soar of up to 3.5 million barrels.
An oil analyst of Global Risk Management, Michael Poulsen state the newly announced news is quite overstated and many investors are waiting for the EIA data. This afternoon we all will know for sure whether there’s a true confirmation of the current trend or not. In general, many investors expect some volatility around this long-awaited publishing.
Additionally, chances of coordinated production cut are quite low and there’s nothing surprising in this fact. At least, Société Générale, an oil analyst supports this point of view.