Weekly US oil inventories -745K vs +4000K expected

Weekly petroleum inventory data from the EIA:

us oil inventories
  • First draw since January
  • Crude -745K vs +4000K expected
  • Gasoline -3513K vs -2500K expected
  • Distillates +3511K vs +3000K expected
  • Cushing -3002K vs +2068K a week ago
This is a surprise and it’s boosted WTI back to $26.00.
Late yesterday, the private data from API showed:

  • Crude +7600K
  • Gasoline -1911K
  • Distillates +4712LK
  • Cushing -1000K

IEA chief Birol says oil usage will be below pre-virus levels for at least a year

Comments by IEA chief, Fatih Birol

I think that is very much a given at this point, but the good news is that oil demand should get better over time as economies start to pick up eventually. That said, there will still be pressure on oil prices as inventories continue to build and as storage spaces run short.

In the bigger picture, the real setback is that if there will be a resurgence in coronavirus cases down the road. That may prompt lockdowns again and will likely cause a rethink of how major economies are going to establish a new normal moving forward.

China says Trump call to halt investment in Chinese stocks runs counter to economic law

Tensions between the two countries continue to mount in recent days

In case you missed it, Trump directed the Federal Retirement Thrift Investment Board -charged with overseeing billions in federal retirement dollars – to stop plans to invest in Chinese companies/stocks on the pretext of ‘national security’.

China is now fighting back on that by saying such a call runs counter to economic law, according to the latest remarks by the Chinese foreign ministry.

This is going to be a long drawn out battle between the two countries.
US China

China’s parliament opens on May 21 (no balloons allowed)

Here’s a little snippet:

  • Beijing has banned the flying of all aerial vehicles and balloons for entertainment, advertisement or other purposes within its administrative area from May 20-28.
Due to the annual parliament set to open on May 21.
  • annual meeting of China’s top lawmakers and political advisers
  • nicknamed the “Two Sessions”
  • The Two Sessions include the plenary sessions of the National People’s Congress (NPC), the country’s top legislature, and the Chinese People’s Political Consultative Conference (CPPCC), a body that advises the government on a range of issues.
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