Crude Ticks Higher Despite Rising Stocks Amid Record Chinese ThroughoutPosted 10/18/2019 9:05AM CT |
Oil prices have continued their follow through from yesterday’s gains and are ticking higher despite the EIA confirming the massive build in API crude stocks of 9.2 million barrels. This comes amidst data in the overnight showing China’s GDP grew 6% in the third quarter, a lower than expected reading and the lowest in almost three decades, which was weighed down by soft factory production and slowing domestic demand. This was largely offset by Chinese September refinery throughput up 9.4% year over year, which provides underlying support and demonstrates resilient demand expectations despite a near multi-decade low in GDP growth. In addition, OPEC and compliance stated that output quotas were exceeded at 236% in the month of September. The market remains bearish trend with today’s range seen between 51.79 – 54.86.