API reports build while market awaits EIA report

Both Brent and WTI is heading higher as the focus shifts on geopolitical tensions. WTI is currently trading at $66.2 per barrel and Brent at $5.6 per barrel premium to WTI.

Key factors at play in the crude oil market –

• OPEC production up 32.323 million barrels per day.
• Saudi production eased in July to 10.36 million barrels per day.
• Trump is pressing Saudi Arabia to increase oil production by almost 2 million barrels per day. Saudi Arabia is likely to comply once the supplies from Iran starts drying due to sanctions by the U.S.
• The U.S. reportedly asked allies to stop importing Iranian oil from November this year.
• Libyan production remains subdued amid political crisis.
• Venezuela in crisis as oil production declined to 1.24 million barrels per day in July. There has been an assassination attempt on President Nicolas Maduro last weekend.
• EIA projects U.S. crude production to increase to 12 million barrels per day by end of 2019 and U.S. would become the single largest producer by the next five years.
• Current U.S production at 10.8 million barrels per day.
• API reported a build of 3.66 million barrels of crude oil. Gasoline saw a draw of 1.56 million barrels.

Today’s inventory report from US Energy Information Administration (EIA) will be released at 14:30 GMT.