Crude oil prices are soaring this morning after the American Petroleum Institute (API) reported the first crude draw since the end of the year along with the second draw in Cushing, Okla. Refiner demand is picking up as the spring maintenance season winds down. Last night’s API report will make this morning’s more widely followed Energy Information Administration (EIA) oil inventory report that much more important. The market sentiment remains based to the bullish side with the API data adding to the growing view that the market is on the way to recovery.
The market has been continuing in its uptrend this week supported by a pipeline closure in Libya due to a protest along with the falling U.S. dollar. The surprise draw in crude oil stocks in the United States is being cautiously embraced in overnight trading as the market awaits confirmation from the EIA. The above said there is still a significant surplus of oil in the world especially in the United States.
Global equities were mixed with Asian bourses getting hit with another round of profit taking selling. The EMI Global Equity Index gained 0.10 percent on strong moves to the upside in Europe and in Brazil. The year to date gain for the Index is now at 12.3 percent. Global equities have been a neutral indicator for the direction of oil prices this week.