Oil takes a leap up as US crude inventory surprisingly drops

Discussion in 'CFDs' started by Profiforex_Victory, May 11, 2016.

  1. Profiforex_Victory

    Profiforex_Victory Новичок

    Oil prices experienced a jump following reports coming from the Unites States government on US crude inventory. Crude inventories for the first time in three months had fallen. This fall which was quite unexpected in US crude inventory had added to concerns on the part of investors as there has been a fall in production from Canada and Nigeria as well. Production in Canada has been down for almost a week now as wildfire in oil sands had caused major production facility to be shut down.

    Giving more details to the reports, the EIA ( U.S. Energy Information Administration) made the official announcement that crude inventories had dropped down by over 3.3 million barrels. This was a big surprise as analysts had predicted a rise of about 714,000 barrels

    Following this data, oil prices leap about 3% up. Brent went up by over 3.0% coming up to $46.97 per barrel. US crude on the other hand had gone up by 2.8% moving up to $45.91.

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