Will the API confirm the consistent decline in the US crude inventories?

 

API US inventory Data - January 2022

The price of crude oil has lost its upward momentum on Tuesday, but still remains relatively high in light of growing demand for the commodity.

On Monday, there was a substantial increase in the price of natural gas, LNG, and in proportion, the price of crude oil went up too.  The price of LNG, however, fell on Tuesday, putting a drag on surging crude oil prices.

Analysts are worried about the impact on the crude oil demand in the US, the world’s largest consumer, due to the steep rise in Covid-19 cases, as the optimism that stemmed from the relative success of the nationwide vaccine campaign started to wane.

In this context, they are watching the latest data on the US crude inventories, scheduled to be released by the API, American Petroleum Institute, today.

Since November 2021, according to the data from the API, the inventories have been falling, sometimes exceeding the weekly estimates of the former.

If the trend is not broken, it is encouraging news for both investors and traders; that means the impact on the demand of fuel has not been subjected to the fear of spread of Omicron, the latest variant of the Coronavirus.

In Asia, meanwhile, the demand for the commodity is up as the economies are picking up, despite the lingering concern over the spread of Omicron variant of the Coronavirus.

Both China and India are doing everything in their power to keep the risk at bay without harming the respective economies.

In India, there was a rise in diesel consumption in December: since more than 2/3 of consumed fossil fuel in the vast nation is diesel, it is a clear indication that the economy is on track; in China, meanwhile, the authorities are hopeful that the spread of Omicron will be behind them in the coming weeks ahead, exactly it did during the spread of other variants in the past.

Since fatalities are encouragingly low from the new variant, the global community as a whole appears to be bracing itself for living with Covid-19, while minimizing the tendency to go into lockdowns.

 

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