The logic behind strong oil rally: US oil inventories down again

US crude oil inventories



Exactly as some analysts anticipated, the EIA, the US Energy Information Administration, released its much-awaited data yesterday while confirming that US oil inventories were down again for the week ending December 25.

The drop was much more than what was expected - 6.06 million barrels.

The value was significantly larger than the number predicted by the API, the American Petroleum Institute, just a day earlier on December 29; the predicted drop was 4.8 million barrels.

There is more encouraging news on the crude oil front: the exports grew by 3.6 million barrels a day, especially to Asia, buckling the previous trend that used to be associated with the pandemic.

More interactive charts that matter in when it comes to determining the oil price are here:



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