The U.S. Energy Information Administration (EIA) revealed on Wednesday that crude inventories fell by 9.362 million barrels in the week ended August 28. Economists had forecast a decrease of 1.887 million barrels.

At the same time, gasoline stocks dropped by 4.320 million barrels, while analysts had expected a decline of 3.036 million barrels. Distillate stocks fell by 1.676 million barrels, while analysts had forecast a drop of 1.357 million barrels.

Meanwhile, oil production in the U.S. tumbled by 1,100,000 barrels a day to 9.700 million barrels a day.

U.S. crude oil imports averaged 4.9 million barrels per day last week, decreased by 1.0 million barrels per day from the previous week.

FXStreet notes that gold continues the expected consolidation following the move to the objective of $2075/80. Nonetheless, strategists at Credit Suisse believe this is a temporary pause only ahead of the yellow metal core bull trend eventually resuming.

“Whilst we continue to see the long-term trend higher, reinforced by falling US Real Yields and a falling USD, our immediate bias remains for further consolidation above a cluster of supports at $1867/37, which includes the 23.6% retracement of the rally from the 2018 low.” 

“Should weakness extend, we would see scope for a deeper setback to $1765, potentially $1726.” 

“We look for an eventual move above $2075 with resistance seen next at $2175, then $2300. Whilst we would look for a fresh consolidation at this latter level, a direct break can see potential trend resistance at $2417, with scope seen for $2700/20 over the longer-term.”

“It is worth noting that monthly RSI has reached its extreme levels seen in 2006 and 2008 adding weight to the view for a lengthier pause in the bull trend.”

FXStreet reports that hurricane Marco and Laura came and went, and oil prices went back into consolidation. Brent Oil is stable around the $46 level but Howie Lee, an economist at OCBC Bank, expects the black gold to hit $50 by the end of 2020.

“The twin hurricanes largely avoided the key ports and refineries in Texas. Prices at the back end have rallied with the hurricanes but do not appear to have corrected as much as the front end of the curve.”

“US crude oil inventories declined for the fifth consecutive week; implied gasoline demand is now within 2.5% of its pre-coronavirus levels; and China diesel demand in July rose its highest since Feb 2018, notwithstanding seasonal effects.” 

“Near-term, consolidation looks like it might continue. Further out, we remain bullish on crude oil, with the view that Brent may hit $50/bbl by end-2020.”