- Crude oil futures were lower in mid-morning trade in Europe on Nov. 10.
- As the latest EIA Short Term Energy Outlook projects oil markets to be oversupplied in early 2022.
A Platts news source states that crude lower as EIA projects oversupplied market by early 2022.
Latest US crude inventory data
The EIA is set to release its latest US crude inventory data on Nov. 11 with the market watching closely whether it will confirm the inventory draw reported by the API on Nov. 9.
At 11:20 am London time (11:20 GMT), the January ICE Brent futures contract was down 7 cents/b at $84.71/b from the previous close, while January NYMEX WTI futures were down 26 cents/b at $82.32/b.
Crude prices in Europe
Crude prices stagnated midmorning in Europe after ticking up in midafternoon trade in Asia, following a report from the American Petroleum Institute that showed a larger than expected fall in US crude inventories.
This caps a week-long rally, which saw Platts Dated Brent prices rise $2.68/b in the past five days.
Latest data from API
According to latest data from the American Petroleum Institute, or API, US crude inventories fell by 2.5 million barrels for the week ending Nov. 5 compared with a build of 3.6 million barrels reported by the API for the previous week.
The forecasted consensus for the week ending Nov. 5 was an increase of 1.9 million barrels, exacerbating concerns about low crude inventory levels in the US over the past weeks.
Short-term Energy Outlook
Meanwhile, the EIA in its latest Short-Term Energy Outlook has also noted that growth in output from OPEC+ members, US shale and other non-OPEC countries will outpace slowing growth in global oil consumption in 2022.
It forecasts Brent prices easing from current levels to an average of $72/b for the year.
“Prices are mostly rangebound ahead of the possibly bullish signals from the EIA crude inventory data, but the bearish outlook by the [Short Term Energy Outlook] EIA report has a balancing effect,” said one commodity analyst at Commerzbank on Nov. 10.
US Labor department
The focus for the rest of the week will shift to inventory data reported by the US Energy Information Administration as well as key inflation readings to be released later in the day by the US Labor department.
The weekly inventory data from the EIA, is due to release on late Nov. 11 with market watchers awaiting to confirm on the drawdown in crude stocks.
The Labor Department will release the October consumer price index on Nov. 10, which is expected to show a 0.6% monthly increase for all goods – which would represent a 5.9% annual increase.
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Source:Platts
