Oil: Largest inventory build-up in nearly two decades – BBH

FXStreet (Delhi) – Research Team at BBH, suggests that the most important development has been the unexpectedly large oil inventory build reported by the API ahead of today’s government estimate.

Key Quotes

“The 11.4 mln barrel build is the largest in nearly two decades. To put the rise in perspective, consider that the US output is around 9.2 mln barrels a day. The news keeps the price of crude volatile, and yesterday’s $1.10 increase in the March light sweet contract has been completely unwound today.

This is turn has weighed on the oil-sensitive currencies, like the Canadian dollar and Norwegian krone. The US dollar recorded an outside down day against the Canadian dollar. It traded on both sides of Monday’s range and finished the North American session below Monday’s lows. While this is often a seen as a bearish technical development, the retreat in oil prices has sapped the interest in follow through selling. There is near-term scope for the greenback to test the CAD1.4200 area.”

Research Team at BBH, suggests that the most important development has been the unexpectedly large oil inventory build reported by the API ahead of today’s government estimate.

(Market News Provided by FXstreet)