US EIA Oil Stocks preview: Oil rattled as Trump cancels stimulus talks
US oil stockpiles rose by more than expected during the week ending October 2nd.
Data from the American Petroleum Institute showed that oil inventories had grown by 951,000 barrels – more than double the 400,000 barrel build analysts had predicted.
The larger-than-expected build follows a smaller-than-expected draw the week before, casting doubts over the robustness of demand in the US.
While gasoline stocks fell by -867,000 barrels during the same period, this was a little short of forecasts and only just over half the size of the build reported the week prior. Distillate inventories fell by just over a million barrels after the previous week’s -3.4 million barrel drop.
Trump tweets: No stimulus discussions until after the election
Also weighing on crude oil sentiment today is the abrupt cancellation of negotiations over a new stimulus package.
President Trump, fresh out of hospital following his Covid-19 diagnosis, tweeted that the Democrats were ‘not negotiating in good faith’ and that talks would not resume until after the election.
Although markets still expect stimulus regardless of who wins the election, the cancellation of talks adds more waiting time to the already delayed second dose of fiscal support.
US EIA Crude Oil Inventories report on tap
Oil traders will be looking for an upside surprise today when the official US Energy Information Administration data is published.
Last week’s report showed a drop in oil stockpiles of nearly -2 million barrels. Analysts this week are expecting to see an increase of nearly 300,000 barrels.
The report is due at 14.30 UTC.