Oil drops despite large US inventory draw | Forexlive

WTI crude oil is at the lows of the day, down $1.62 to $72.49.

The Boxing Day rally has now been completely wiped out and crude is lower on the week.

The drop in oil comes despite a bullish weekly oil inventory report that showed:

• Crude -7114K vs -2704K exp
• Gasoline -669K vs +208K exp
• Distillates +741K vs +600K exp
• Refinery utilization +0.9% vs +0.2% expected
• Production mbpd 13.3mbpd vs 13.3mbpd prior
• Implied mogas demand 9.17 mbpd vs 8.75 mbpd prior

Oil is in danger of falling to the lowest since Dec 18. A lower weekly close would also end a streak of two small weekly gains that had followed an eight-week losing streak. The market isn’t too concerned about the Red Sea, it seems.