Bullish Reaction to DOE Data


Following this afternoon’s latest batch of crude inventories from the US , an interesting reaction occurred in both WTI and Brent. Despite the figure coming in higher than last weeks and higher than expectations, the initial move has been higher. This maybe discounted by the market due to the fact that maintenance is currently underway on several refineries, causing a short-term drop in demand.

A similar situation happened last week  following a beat on expectations with the failure to see follow through for bears leading to a sharp rally into the close (shown on the left hand side of the chart).