1. We begin with the energy markets where US crude oil inventories unexpectedly declined, sending prices higher. The Fed’s decision to leave rates unchanged gave crude an additional boost.
2. The next chart shows US oil inventories in terms of barrels as well as days of supply.
3. US crude oil production remains stable – for now. Are the current prices, including forward prices (given the steep futures curve), sufficiently high to sustain production at these levels?
4. Speaking of oil production, Russia’s output growth has stalled.
Source: HSBC, @joshdigga
5. US gasoline supplies are now below last year’s levels in terms of days of supply, which is also contributing to bullish sentiment in oil.
6. Gasoline demand is elevated for this time of the year – typically it should be falling off faster than it has.NFTRH Premium for an in-depth weekly market report, interim updates and NFTRH+ chart and trade ideas; or the free eLetter for an introduction to our work. You can also keep up to date with plenty of actionable public content at NFTRH.com. Or follow via Twitter @BiiwiiNFTRH, StockTwits or RSS. Also check out the quality market writers at Biiwii.com.