- The EIA reported that crude oil inventories rose 196K barrels versus estimates of a 1.3M barrel decline. Gasoline inventories declined 4.02M barrels versus estimates of an 800K barrel fall. Distillate inventories rose 1.49M barrels versus estimates of a 2.0M barrel increase.
BOTTOM LINE: July sales at US services companies remained close to the three-month high reached in June, suggesting growth may accelerate in the second half of the year, Bloomberg reported. This gauge represents 87% of the US economy and is still near its all-time high of 66.9 set in April. The new orders component of the index rose to 61.9 from 59.5 the prior month. The backlogs component of the index rose to 53.5 from 52.5 and the export orders component rose to 53.5 from 50. These reading bode well for further US economic strength over the coming months.
Oil is down modestly on the inventory data. As peak gasoline season is coming to an end, distillate supplies will further dominate trading in the commodity.
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